At a time when every telecom services provider in India is reporting net loss, Nowray-based Telenor aims to turn operating and cash-flow positive in all the six circles in India by 2013, a year ahead of its target.
"For now, our concentration and focus is clear. Six circles, basic services and break-even for 2013. This is a year ahead of our earlier target for breaking even,” said John Fredrik Baksaas, president and CEO of the Telenor Group. However, the company would take a call on future expansions in India once it turns cash positive in all six circles -- . Gujarat, Bihar, Maharashtra, Uttar Pradesh east, Uttar Pradesh west and Andhra Pradesh where it has recently won back spectrum.
Telenor, which had entered Indian market in 2009 through a joint venture (JV) with real estate giant Unitech Group, had lost all permits in India as the Supreme Court, in February, had cancelled 122 telecom licences, issued in 2008 by the then telecom minister A Raja.
After it trims down operations in India post January 18, 2013, when its licences become invalid, Telenor will be left with about 36 million customers in India. Its average revenue per user (ARPU) currently stands at Rs 95. “We would better stay profitable in a more concentrated geography than to look at the potential loss-making of a longer business case and an extended business case in a
bigger geography,” said Baksaas.
However, the Norway-based telecom service provider has bought back its stake in the JV and had then sold a 26% stake in its Indian unit -- Telewings Communications Pvt Ltd to Mumbai-based Lakshdeep Investments & Finance.
Baksaas said that Telenor would continue to offer services in India under Uninor brand. It has already invested about Rs 15,500 crore ($2.8 billion) in India so far.
Baksaas has also said that Telenor has no immediate plans to look for an Indian partner. “We have a partner in India, we have a structure, rest is speculation,” he told reporters here on Thursday. He was responding to a question referring recent media reports that Telenor was in talks with Indian telcos for potential merger and acquisition.
Earlier this week, it has been reported by Bloomberg that Telenor was in talks with Tata Teleservices to combine their services in India. Earlier, local media had reported that Telenor was also talking to Loop Mobile for possible acquisition. Terming these as speculation, Baksaas has said that “Telenor never comment on speculation.”
