{"id":53401,"date":"2012-02-03T15:01:21","date_gmt":"2012-02-03T09:31:21","guid":{"rendered":"index.php\/2012\/02\/03\/india-proves-too-hot-to-handle-for-norways-telenor\/"},"modified":"2012-02-03T15:01:21","modified_gmt":"2012-02-03T09:31:21","slug":"india-proves-too-hot-to-handle-for-norways-telenor","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2012\/02\/03\/india-proves-too-hot-to-handle-for-norways-telenor\/","title":{"rendered":"India proves too hot to handle for Norway’s Telenor"},"content":{"rendered":"
\"Telenor-pirat\"<\/a> <\/p>\n

Telenor-pirat (Photo credit: Hanne LK<\/a>)<\/p>\n<\/div>\n

This is the story of how Norway\u2019s equivalent of India\u2019s BSNL got involved in a $40bn telecom scam. The Indian Supreme Court cancelled 122 2G licenses given on a no-bid basis in 2007. Yes, we are talking about something that happened 5 years ago for technology that\u2019s 10 years old. But the fascinating part is that the spectrum was first sold to a real estate <\/em>company called Unitech about for $365.42 million which then turn around and sold a 60% stake in its wireless division to Norway\u2019s Telenor for $1360 million! I\u2019m sure some people were feeling pretty smart about turning in a 270% profit for their \u201cnavigating\u201d skills.<\/p>\n

The minister, A. Raja, who sold the spectrum is a nobody<\/em> from South India representing a grand total of one million voters. It must be a pretty fascinating journey for him coming in #2 in Time magazine\u2019s 2011 list of \u201cTop 10 Abuses of Power\u201d list (just behind the Watergate scandal). <\/p>\n

The underpriced spectrum giveaway unleashed a price war where SMS and voice tariffs in India were hammered down to the lowest in the world.<\/em> Telenor had planned to invest about $3 bn in India and is said to be almost 2\/3rds there. So that\u2019s $2 bn that just got vaporized. Besides, they had out sourcing agreements with a whole bunch of Indian BPOs. Wipro is said to have $550 million worth of deals.<\/p>\n

Its funny how Telenor, one of the top performers on the Dow Jones Sustainability Indexes for the 10th year running, got dipped in Indian curry.<\/p>\n

Sources<\/strong>:<\/p>\n

Telenor History<\/a>, Nilgiris Lok Sabha Constituency)<\/a>, A Raja<\/a>, 2G Spectrum Scam<\/a>, Uninor<\/a>, IT BPOs Hit<\/a><\/p>\n

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