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How Telenor India Left with Few Limited Options ?

Telenor is well known name worldwide and driving force in Telecom sector when it comes to Europe. During spectrum liberalization and offer given to additional players to enter into India, Telenor invested heavily but unfortunate scam spoiled their plan. It followed with spat with its partner Unitech group.

Post taking the management and company control Telenor tried its level best to reestablish itself but achieved bare minimum success. Telenor got successful in low earning group given their very low tariff and especially Circle C.

Till now Telenor is not having license for 4G services and their service operation is operational in limited state which hinders them to grow or invest faster. As most of the decision happen from head office and management sitting over there don't understand the dynamically changing environment. In most recent auction, Telenor ignored it completely and it indicate that they have made their mind. In case they want to run the operation then they are left with three options only and those are as follows:

  • Sell its business and close Indian operation and probability of the same is very high.
  • Keep running the business and lose the customer base to big cats like Reliance Jio, Airtel and likes.
  • Invest Billions of $ and acquire companies like Idea Cellular or Reliance + Aircel  entity to established themselves where I see very less probability.

In my view the sooner they realize then it will be better for their investors and none of the companies allow its international operation falls in financial trap

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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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