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Telenor Group May Exit Indian Market Sighting Unfavorable Operating Conditions

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Telenor Group May Exit Indian Market Sighting Unfavorable Operating Conditions

Telenor India announced that it is not going to participate in upcoming spectrum auction of 700 MHz in September, 2016. Also some of the technology websites mentioned that Telenor Group is even planning to exit from Indian market; which is later on explained by the Group CEO Sigve Brekke said that the operator aims to find a long-term solution for its India business as soon as possible.

There are some fundamental reasons behind these two announcements of the operator. Firstly, Telenor has witnessed a profit fall in its Q2 results of this year. And second but not the least, the high auction charges in India have forced the operator to shut down its business in one of the world’s largest democracy.

Telenor Group May Exit Indian Market Sighting Unfavorable Operating Conditions

In the results statement, Telenor said that:

“After thorough consideration, it had decided not to participate in the upcoming spectrum auction, as we believe the proposed spectrum prices do not give an acceptable level of return”.

This auction is expected to raise a huge amount of INR5.6 trillion ($85 billion) in India.

Telenor Group in Pakistan:

Now comparing this situation with Telenor’s presence in Pakistan, we will come to know that the operator is actively playing its role in the “Digital Ecosystem in Pakistan” of the country at large.

Firstly, Telenor successfully acquired 850 MHz spectrum recently in Pakistan. Secondly, the group CEO Sigve Brekke visit to Pakistan also indicates company’s interest in further growing its business here. During his visit, Sigve elaborates that the improving cellular and mobile broadband (MBB) penetration has convinced the group to sell its static shares in rest of countries so that they can further invest in Pakistan. Through many worth mentioning initiatives, Telenor Group indicated that it is committed to support Pakistan’s efforts to become a digitally enabled nation.

The appointment of Irfan Wahan as the new and first Pakistani CEO of Telenor is yet another indicative of group’s seriousness and interest in Pakistani market.

Also Read About: Telenor Digital Festival Lab & Telenor’s Velocity Initiative