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| Telenor cuts India capex by Rs 3,500cr |
| Press Trust of India / New Delhi Nov 18, 2009, 13:59 IST |
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Norwegian mobile operator Telenor today said it has slashed the earmarked capital expenditure by Rs 3,500 crore from Rs 15,500 crore spread over the next five years on lower equipment costs.
"The targeted rollout combined with better terms from equipment vendors will reduce the capex requirements. Accumulated capex first 5 years to be reduced by around Rs 30-35 billion. The earlier communicated peak funding of Rs 155 billion (Rs 15,500 crore) is now expected to be somewhat lower", it said in a statement
The mobile major that has mobile services joint venture in India with Unitech Wireless, affirmed other targets envisaged in its India operations. Telenor is due to launch in India later this year. Telenor holds 67.25 per cent in Unitech Wireless which it picked for Rs 6,120 crore.
"The market share ambition and other financial targets, including EBITDA break-even approximately three years after launch and operating cash flow break-even approximately five years after launch, are still valid," it added.
The company said it would go for a focused roll-out in majority of 22 circles, while meeting licence obligations in all circles which would also save the operational costs.
Telenor is the second largest foreign operator in Asia. It has operations in the Nordics, Eastern Europe and across Asia. Headquartered in Norway, it is among the largest mobile operators in the world with 172 million mobile subscriptions (as per Q3 2009).
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