Norway’s Telenor said that it does not have ambitions to become a pan India operator for now.
The company, which offers services under the Uninor brand in the country, said that it may be part of speculation around consolidation in the Indian market but there are no concrete steps in that direction that can be talked about.
“ýWe are happy with the spectrum we have bought in the auctions. These circles account for over half of India's population,” said Jon Fredrik Baksaas, President and CEO, Telenor Group.
“We have a better platform than earlier in India. When we see the framework of mergers and consolidation rules, India will move towards that direction but who and how, we can all speculate,” he said
Telewings acquired fresh spectrum in seven circles for ₹844 crore and is believed to be looking for an acquisition to get a pan-India footprint. If market buzz is to be believed, Telenor could be in talks with Tata Teleservices for a merger or an acquisition. Baksaas termed these reports as speculation.
“We are not planning pan India. There are no such ambitions. However, we will be part of the consolidation speculation but concrete action in that direction cannot be commented upon this time,” he said.
Telenor has 74 per cent stake in the Indian venture Telewings. Baksaas declined to comment on whether Telenor will increase its stake in the venture to 100 per cent. The Government has allowed telecom companies to increase foreign investment up to 100 per cent.
The speculation around Telenor’s India investment stems from the fact that the operator, despite having deep pockets, has taken a position to offer only basic voice and 2G Internet in the country at a time when most other players are looking to roll out 4G-based data services.
Baksaas defended the strategy by saying that the focus is on providing best quality services at low cost to the mass market. “We have an attacker’s mindset in India for addressing that part of the market which are at the lower-end of the market. I am impressed how Uninor has managed to survive and their guts gave Telenor the confidence to buy spectrum,” Baksaas said.