GSM operator Uninor today said that it has decided to wind up operations in Kolkata and West Bengal telecom circles and will issue public notice to its subscribers to port their numbers or to exhaust their balance by January 18, 2013.
The company has about 5.6 million subscribers in Kolkata and West Bengal telecom circles.
Uninor, which has been operating in both Kolkata and West Bengal telecom circles since December 2009, will lose validity of its licences in Kolkata, West Bengal and Mumbai telecom circles on January 18, 2013.
Uninor has lost its pan India licences due to a February order by the Supreme Court that cancelled 122 licences issued in 2008 by the then telecom minister A Raja.
Uninor, which is backed by Norway-based Telenor, has secured licences for six telecom circles -- Andhra Pradesh, Uttar Pradesh East, Uttar Pradesh West, Bihar, Gujarat and Maharashtra, in the recently closed auction of 1800 MHz spectrum. But, it had stayed away from bidding for Kolkata, West Bengal and Mumbai telecom circles.
Meanwhile, the company has said that it would evaluate possibilities of bidding for the Mumbai telecom circle in the upcoming auction of the 1800 MHz spectrum band which would be conducted by March 2013.
Earlier in July-August, Uninor has trimmed operations to nine circles from 13 circles. That time it had stopped services in Tamil Nadu, Kerala, Karnataka and Orissa.
“While we have ensured continuity in six circles, license cancellation and no new spectrum likely to be available through auctions in 2013 means we will discontinue operations in Kolkata and West Bengal. We have all been a part of an extraordinary fight back for which I credit our employees and partners and remain grateful to our customers in each of our circles. In Kolkata and West Bengal our focus now is on conducting the process of closure with full transparency and responsibility to minimize the negative impact this outcome has on all those affected by it,” said Sigve Brekke, Managing Director, Uninor.
In a statement, Uninor has said that the company has bid for the six circles as those account for about 80% of its subscribers and 83% of its workforce.
However, the company will explore relocating its employees from Kolkata and West Bengal to other circles, and would also provide assistance in securing jobs outside the company through outplacement agencies, Uninor said in a statement.
The company will enter into roaming agreements with other service providers in all telecom zones where the company would not operate post January 18, 2013.
At present, Uninor is in process of final settlements with its trade partners in Kolkata and West Bengal telecom zones.
The company will also evaluate options to relocate this network infrastructure over time to the circles where its operations are continuing. It has already started initial dialogues with each of the network partners.
Last month, the company has said it aimed to turn operating cash positive in all six circles by end of 2013.