Magazine
| Ezine |
| Current Issue |
| Magazine-Archive |
| News |
| News - Archive |
| Advertise with Us |
| Subscribe |
| Buy Latest Issue |
Subscribe Newsletter
| Telenor shuns India after troubles hit profit |
| Wednesday, 09 May 2012 | |
|
Norway’s Telenor distanced itself further from the Indian market on Tuesday, excluding the country from its 2012 forecasts for the first time after licensing problems led to massive write-downs that weighed on its quarterly results. State-controlled Telenor posted a quarterly net loss of 390 million crown including minority interests after writing off the remaining 3.9 billion crown ($672.45 million) value of its Indian unit Uninor. That compared with a profit of 3 billion a year earlier. The group's troubles in India contrasted with improvements in several key markets that had been struggling with margin pressure. Supreme Court earlier this year ordered the cancellation of 122 telecoms licenses after a corruption-tainted licensing round. The proposed fee for a replacement license is prohibitively high. This (fee) package will make it almost impossible for incumbents like Telenor to stay in India, Chief Executive Jon Fredrik Baksaas said. Analysts have welcomed Telenor’s possible exit as the low-margin market has been a drag on the firm’s earnings for years, and winding up the operation would be a short-term boost to both earnings and the stock. –The Financial Express |
| < Prev | Next > |
|---|
© Copyright 2007, ADI Media Pvt. Ltd.-Telecommunication, Broadband & Networking Magazine Publishers