New Delhi: Benefitting from lower equipment costs, the Norwegian mobile operator Telenor, which is partnering Unitech's telecom foray, has cut down its India investments plans by a hefty Rs 3,500 crore from the earlier estimate of Rs 15,500 crore, spread over five years.
"The targeted roll-out, combined with better terms from
equipment vendors, will reduce the capex requirements.
Accumulated capex in the first first five years will be
reduced by Rs 30-35 billion (3,000-3,500 crore). The earlier
communicated peak funding of Rs 155 billion (Rs 15,500 crore)
is now expected to be somewhat lower," it said in a statement
here today.
The mobile major has affirmed other targets envisaged in
its India operations. Telenor is due to launch the operations
later this year in the country under Uninor brand name.
Telenor holds 67.25 per cent in Unitech Wireless which it
picked up for Rs 6,120 crore earlier.
"The market share ambitions and other financial targets,
including EBITDA break-even by around three years after
the launch and operating cash flow break-even by five years
post-launch, are still valid, it added.
The company said it would go for a focused roll-out in
majority of the 22 circles, while meeting licence obligations
in all the circles which would also save operational costs.
It already has agreements with about 1,000 distributors
and three lakh points of sale in place, besides 12,000 running
base stations.
Telenor is the second largest foreign operator in Asia
with operations in the Nordics, Eastern Europe and across
Asia. Headquartered in Norway, it is among the largest mobile
operators in the world with 172 million subscribers as of
September this year.
Bureau Report
First Published: Wednesday, November 18, 2009, 18:14