Telenor India in trouble, working on exit plan despite 4G upgrade

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Telenor in India has announced that it is upgrading its network for 4G services and by the end of the financial year, it will start providing speedy 4G data in 7 circles out of total 22 where it has the 2G license.

As reported by Times of India, the Norwegian company has awarded the contract to Huawei which has already swapped 7000 cell sites out of total 25000 cell sites the telco holds.

Contrary to what Telenor announced lately, the company lacks the spectrum to offer such high-end speedy services. A report in Economic Times reveals that Telenor is only deploying the technology for tweaking the 2G network that will allow it to offer LTE services in its areas of presence. The report claims that it is highly unlikely that this upgrading will serve the purpose the way a dedicated spectrum does the job which is not available.

The news site further states that company is on an exit plan and anticipating a buyer to offer $ 1.6 billion whereas, analyst firms do not evaluate a price beyond $ 1 billion.

The group had already invested $ 3 billion since 2008-09 but lost the entire spectrum when Indian government revoked licenses in 2012 owing to corrupt practices during spectrum auction.

Telenor preferred to fight back but never came out of the crisis ever since.

Although, the telco stresses upon the cheapest service provider with a slogan ‘sabse sasta’ but it is also ranked among the smallest operator in India. The strategy of being cheapest also earned it year-on-year operating loss for the quarter to December. The company holds the lowest number of subscribers in the country with only 30% using the 2G data and 70% the voice service only.

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