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Long term operations in India subjected to spectrum auction: Telenor Group CEO

The Telenor Group posted an operating loss of 3,100 million Norwegian Krone (NOK), approximately Rs 2,530 crore for its Indian operations during its first quarter results, and hinted on suspending operations in India if the upcoming spectrum auctions turns out to be costlier. According to a PTI report, Telenor global CEO Sigve Brekke said that the company’s long terms presence in India is subjected to its ability to secure additional spectrum (from upcoming auctions). He also added that Telenor is not able to compete with current spectrum portfolio it holds in India. Brekke further said that the company is looking at ‘potential trading options’ in order to maintain a sustainable business model. However, he said that the company is looking to acquire new spectrum at “a price that we can justify”. "We are in India to make money, if we don't see return then we need to look at other alternatives," Telenor CFO Morten Karlsen Sorby added. MediaNama has written to Telenor regarding its stance on TRAI’s costly reserve prices, and the government’s move to offer liberalized spectrum, and whether it would look to collaborate with other telcos in spectrum sharing/trading, or roaming deals. We will update the story once we get a reply. Alternate payment structure for telcos: This month, TRAI recommended an alternate payment structure for telcos to ease debt. For the upcoming auctions, telcos could first pay 10% of the bid amount; the balance 90% could be paid over 18 years with 18 equal annual installments, along…

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