CALL DROPPED

New Delhi, Feb. 15: Norway’s Telenor wants to end its strategic partnership with real estate player Unitech Limited and find a new partner for its mobile operations in India after the Supreme Court revoked its licences in the country.

“The strategic partnership with Unitech Limited does not have a future, and it (Telenor Group), therefore, will start the process of looking for a new Indian partner,” the global telecom player said in a statement.

Telenor holds 67 per cent in Unitech Wireless, which operates under the Uninor brand in India.

The Norwegian firm has blamed Unitech for the cancellation of the mobile permits and has sought compensation from the real estate company.

The two companies were already at loggerheads over a proposed rights issue to raise Rs 8,500 crore. While Telenor wanted a rights issue to fund the expansion of Uninor, Unitech preferred to take the debt route.

“Telenor Group holds Unitech Limited liable for the breach of warranties related to the cancellation of the licences, seeking compensation for all investment, guarantees and damages caused by the Supreme Court order. Telenor Group also makes an indemnity claim against Unitech for the failure to obtain spectrum in the strategically critical Delhi circle,” said Telenor, which issued a notice to Unitech today, seeking compensation.

Earlier this month, the Supreme Court passed an order to revoke 122 licences issued to all operators on and from January 10, 2008. This included the 22 licences issued to Uninor.

Unitech, however, denied that the cancellation of licences was a breach of warranties and blamed Telenor for the breach of confidentiality clauses. Surprised at the compensation claim, Unitech said Telenor should claim damages from the Government of India.

The global operator has already initiated a diplomatic and legal offensive to secure its investments in India even as it is ready with an aggressive bidding plan to bag licences in a fresh auction.

The Norwegian government holds 54 per cent in Telenor and wants the company to continue its mobile operations in the country. The mobile company has operations in other Asian countries such as Pakistan, Bangladesh, Malaysia and Thailand.

“We believe that the Supreme Court’s cancellation of the Unified Access Service Licences conclusively demonstrates a clear breach of Unitech’s warranties,” said På Wien Espen, group general counsel, Telenor Group.