As a precautionary measure, Norwegian telecom provider Telenor ASA has decided to write-down the remaining fixed and intangible assets in India amounting to NOK 3.9 billion (NOK 2.6 billion after non-controlling interests).
The write-down will be included in Telenor’s results for the first quarter 2012, to be presented on 8 May 2012. After the write-down, Telenor has no further accounting exposure related to India as of 31 March 2012.
Following the Indian Supreme Court’s ruling in February to cancel Telenor partner Uninor’s licenses and the recent recommendation from the Telecom Regulatory Authority of India (TRAI) regarding the 2G license re-auction, the uncertainty has increased significantly, Telenor states in a press release.
If the recommendation from TRAI in its current form should be approved by the Department of Telecommunications (DoT), it will be almost impossible to participate in the auction for Telenor.
Telenor says it is working actively towards Indian authorities to bring forward an acceptable framework for continued operations.
(NRK/Press release)
