Telenor eyes upcoming auctions for expansion in Indian markets
MUMBAI: Norway's Telenor is eying six of the seven telecom zones where permits of Reliance Communications are coming up for renewal, three people familiar with the company's plans said.
Billionaire Anil Ambani-owned Reliance Communications' telecom permits for Madhya Pradesh, West Bengal, Bihar, Orissa, Assam, Himachal Pradesh and the Northeast — where it offers voice services on the coveted-but expensive 900 Mhz airwaves — will be due for renewal in 2015, when the government holds its next round of airwave auctions.
The people quoted earlier told ET that expansion in these zones, except Himachal Pradesh, fits Telenor's strategy in India, as getting 3G bandwidth will help it compete better. Telenor's India unit, Uninor, does not hold spectrum that can offer 3G services — the current growth driver for telecom firms. "Parent Telenor is willing to infuse funds into the company after it reported a maiden EBITDA profit last year," one of the persons said, adding that Himachal isn't of much interest.
Uninor only offers voice services in pre-paid format. It holds just over 4% market share with permits for UP (west), UP (east), Bihar, Gujarat, Maharashtra and Andhra Pradesh. The carrier is working towards an Assam launch soon. "We will be open to looking and evaluating growth opportunities as and when they come," said a spokeswoman for Uninor in response to ET's query on whether the carrier would buy airwaves in the 900 MHz band.
After profit for two quarters, Uninor has been reporting losses on account of investment in spectrum and expansion. The carrier reported a loss of Rs 104 crore in the last quarter. "It needs an interim strategy to bridge the gap between 2G and 4G else it will fall by the wayside," another person said. The company may start by offering faster data speeds on 2G.
Kamlesh Bhatia, research director at Gartner said, "Clearly, you cannot survive being a niche (pre-paid) provider, and you must have a design for the future. So the upcoming auction may provide an opportunity to expand, but it has to be more than acquisition of spectrum."
MUMBAI: Norway's Telenor is eying six of the seven telecom zones where permits of Reliance Communications are coming up for renewal, three people familiar with the company's plans said.
Billionaire Anil Ambani-owned Reliance Communications' telecom permits for Madhya Pradesh, West Bengal, Bihar, Orissa, Assam, Himachal Pradesh and the Northeast — where it offers voice services on the coveted-but expensive 900 Mhz airwaves — will be due for renewal in 2015, when the government holds its next round of airwave auctions.
The people quoted earlier told ET that expansion in these zones, except Himachal Pradesh, fits Telenor's strategy in India, as getting 3G bandwidth will help it compete better. Telenor's India unit, Uninor, does not hold spectrum that can offer 3G services — the current growth driver for telecom firms. "Parent Telenor is willing to infuse funds into the company after it reported a maiden EBITDA profit last year," one of the persons said, adding that Himachal isn't of much interest.
Uninor only offers voice services in pre-paid format. It holds just over 4% market share with permits for UP (west), UP (east), Bihar, Gujarat, Maharashtra and Andhra Pradesh. The carrier is working towards an Assam launch soon. "We will be open to looking and evaluating growth opportunities as and when they come," said a spokeswoman for Uninor in response to ET's query on whether the carrier would buy airwaves in the 900 MHz band.
After profit for two quarters, Uninor has been reporting losses on account of investment in spectrum and expansion. The carrier reported a loss of Rs 104 crore in the last quarter. "It needs an interim strategy to bridge the gap between 2G and 4G else it will fall by the wayside," another person said. The company may start by offering faster data speeds on 2G.
Kamlesh Bhatia, research director at Gartner said, "Clearly, you cannot survive being a niche (pre-paid) provider, and you must have a design for the future. So the upcoming auction may provide an opportunity to expand, but it has to be more than acquisition of spectrum."
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