Telenor Goes to India

Telenor to take a 60% stake in Unitech Wireless in India

October 29, 2008

1 Min Read

FORNEBU, Norway -- Telenor has entered into a definitive agreement to subscribe to new shares in Unitech Wireless for a consideration equivalent to USD 1,070 million. Subject to regulatory approvals, Telenor will hold a 60% controlling stake in Unitech Wireless.

"Gaining access to the world's second largest mobile market is a major achievement for Telenor. Entering the Indian mobile market gives Telenor a unique possibility to further enhance the Telenor Group's position as one of the leading emerging markets operators, and enables us to take part in the development and growth opportunities in one of the fastest growing telecom market in the world," said Jon Fredrik Baksaas, President and CEO of Telenor.

Unitech Wireless has pan-Indian telecommunications licences in all 22 telecom circles, and plans to launch its services in mid 2009. The company was established in 2007 and has already recruited more than 250 employees. The Indian market presents a large attractive opportunity to telecom operators. With a population of approximately 1.2 billion, and a mobile penetration currently at 26%, there remains significant untapped potential of additional subscribers. India is already witnessing a significant increase in mobile penetration with a net addition of approximately 8 million subscribers per month during 2008.

"India enjoys a forward looking telecom regulation and an investment friendly climate. By combining Unitech's strong presence as a trusted corporation in the Indian market with Telenor's successful experience at building and managing best in class mobile operations in Asia, we will together contribute to growing the industry and developing the mobile market in India," said Baksaas.

Telenor Group (Nasdaq: TELN)

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