Norwegian mobile provider Telenor said its Indian unit booked an impairment charge of NOK 2.3 billion (approximately Rs 1,879 crore) within the zone to March, leading to widening of its working loss within the usa and prompting global CEO Sigve Brekke to say that the organization is “no longer able to compete” in India with its contemporary spectrum portfolio.
ET had on April eleven pronounced that Telenor may be seeking to go out its India telecom enterprise however hasn’t been able to find a buyer thus far.
The Norwegian telco has been driven into a nook, without a 3G or 4G offerings, having restricted statistics spectrum and being limited to a few pockets as rivals have turn out to be more potent and Reliance Jio Infocomm prepares to launch operations. The impairment charge is 51.3% greater than the employer’s first sector sales of NOK 1,520 million (Rs 1,227 crore). The company on Wednesday stated operating loss for the quarter stood at NOK 3,a hundred million ( Rs 2,530 crore) as towards NOK 159 million within the yearago sector. “as a consequence of recent development in found spectrum buying and selling expenses and updated assumptions of contractual obligations, Telenor recognized an impairment loss amounting to NOK 2.3 billion related to tangible and intangible belongings in Telenor India,” the business enterprise stated, including that NOK zero.6 billion in non-interest-bearing receivables have additionally been writtendown during the area.
pronouncing the consequences, Brekke stated the corporation’s lengthy-time period presence in India is depending on its potential to comfy additional spectrum. “We are not able to compete with modern spectrum portfolio we’ve got in developing information market,” he stated, adding that the organisation is calling at an answer you acquire spectrum and “a fee that we can justify”.
The organisation, which has operations in Andhra Pradesh, Uttar Pradesh East and West, Bihar, Gujarat and Maharashtra, is now looking at upcoming auctions except exploring capability buying and selling alternatives. all through the zone, Telenor’s Indian operation introduced 1.five million subscriptions, while the subscription base become 15% higher than the identical zone ultimate year.
The business enterprise’s common revenue in line with user (Arpu) in local currency fell by way of eight% to Rs90, usually driven through decrease voice intake and the impact from decreased cell termination fee, partially compensated by way of increased facts usage.
Telenor said sales in neighborhood currency improved 7% over the equal sector remaining yr, while subscription and traffic revenues in neighborhood foreign money accelerated nine%. The company’s ordinary India revenue stood at NOK 1,520 million,up from NOK 1,383 million a year earlier. Capital expenditure (capex) additionally extended within the area to NOK 409 million from NOK 109 million ayear ago.