Uninor parent Telenor to seek compensation if 2G licences lost

Norwegian mobile operator Telenor, which operated in India under the Uninor brand name, has said it will seek damages from the Indian government if it were to lose its 22 licences due to the Supreme Court order in the 2G spectrum scam.

The apex court, in its verdict in the scam, had in all cancelled 122 licences of new 2G players.

"We have informed the government of India of our intent to invoke the provisions of the CECA (Comprehensive Economic Cooperation Agreement) between India and Singapore," Telenor spokesman Glenn Mandelid said in an emailed statement on Tuesday.

Telenor, which had bought 67.25 per cent stake in the joint venture with Unitech for about $1.2 billion and operated under the Uninor brand, has filed a petition in the Supreme Court seeking a review of the cancellation order .

The Norwegian company owns the stake in Unitech Wireless through its unit registered in Singapore. It has served a notice to the government, threatening international arbitration if a solution was not found.

Mandelid said Telenor had not indicated the compensation it intends to seek if its investments in India were to fail but said, "we do intend to seek compensation for all investment, guarantees and damages".

"We are hopeful that it remains the government's intent to protect and encourage bona fide foreign investment in the country," he said.

The Supreme Court had last month ordered cancellation of all 122 mobile licences awarded in 2008 under the then Telecom Minister A Raja. That included 22 licences of Telenor.

"We are convinced that we can resolve this matter through continuing dialogue with the Government so that Telenor Group remains a serious and long term participant in the Indian market that brings the benefit of competition to the Indian consumers," the Norwegian firm said.

With PTI inputs