Telenor maintains India peak funding target

OSLO Fri Dec 14, 2012 1:18pm IST

A visitor rests under a Telenor Group sign at the GSMA Mobile World Conference in Barcelona February 18, 2009. REUTERS/Gustau Nacarino/Files

A visitor rests under a Telenor Group sign at the GSMA Mobile World Conference in Barcelona February 18, 2009.

Credit: Reuters/Gustau Nacarino/Files

Related Topics

Stocks

   

OSLO (Reuters) - Telenor (TEL.OL) will stick to its peak funding target in India, the world's second-biggest mobile market, where it expects to break even by the end of next year after scaling back operations.

The Norwegian telecoms operator has set a peak funding cap of 155 billion Indian rupees, or about 16 billion Norwegian crowns for its Indian operations and recently reduced its presence in the country to stay below the limit.

The funding needs until break even are moderate, it said in a slide ahead of a presentation on Friday

"The most important thing is that they say they don't need to invest more money," said Espen Torgersen, an analyst at brokerage Carnegie.

"But what about 3G and what about M&A? Are there new so called business cases that are not included in the 155 billion rupees?" he added.

India's mobile market is less concentrated than other telecom markets and Telenor said the inevitable consolidation could present opportunities to build muscle.

Telenor won back its telecom operating licences in six of India's most populous states in an auction last month, after Indian authorities had cancelled 122 operating permits awarded in a corruption-tainted licensing round, forcing Telenor and others to reapply.

Telenor originally had licences in 13 circles and the Indian unit has never made a net profit.

While India's more than 900 million mobile phone customers make it the world's second-biggest market after China, intense competition among 15 carriers means wafer-thin margins.

Telenor's Uttar Pradesh East circle has achieved break-even after three years, and Telenor expects its Gujarat and Maharashtra to break even in early 2013, it said.

The cost of acquiring its six new licences was 4.2 billion crowns and the firm targets above 25 percent equity return on new money invested in India (Reporting by Victoria Klesty; Editing by Balazs Koranyi)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage