The Department of Telecommunications (DoT) has approved the transfer of Uninor?s assets to Telenor?s new entity Telewings.
However, for the transfer of assets, Telenor and Unitech will have to submit separate bonds which will indemnify the government from any claims or disputes arising out of the transfer. Further, DoT has also approved Telenor?s proposed move to increase its stake in Telewings to 74 per cent. DoT, has, however, turned down the company?s request to adjust the entry fee paid in 2008 against the bid amount to be paid by for the spectrum won by it in the auctions held in November 2012.
Telenor had won spectrum in six circles (Andhra Pradesh, Uttar Pradesh East, Uttar Pradesh West, Bihar, Gujarat and Maharashtra) auctions held in November 2012 for Rs 40.18 billion.
Earlier, the company had paid Rs 16.58 billion for pan-India licences in 2008. These licences, jointly owned with real estate major Unitech, were quashed by the Supreme Court along with all the other 2G licences issued on or after January 10, 2008.
Subsequently, Telenor had requested DoT to adjust the entry fee paid by it earlier with the current bid amount. The company has paid 33 per cent of its bid price for spectrum following DoT?s refusal to offset the entry fee paid earlier.
Going forward, Telenor plans to continue its operations in six circles under the new entity Telewings, which it had floated as a 100 per cent subsidiary in 2012 after having parted with Unitech. It also dropped its stake to 49 per cent in the company at the time of taking the new unified licence to comply with the foreign direct norms.
