Uninor says to scale down operations in 4 zones

Telenor's Indian mobile phone unit, Uninor, will gradually scale down operations in four of the 13 telecoms zones where it is commercially active to focus resources on the remaining areas, the company said on Tuesday.

Telenor's India unit is among eight carriers who are set to lose a total 122 zonal permits in September after a Supreme Court order to revoke all telecoms licences granted in a scandal-tainted 2008 sale.

The affected companies must bid in an auction to win back the permits. The rules and starting price of the auction are yet to be finalised.

"With lack of clarity around the auctions continuing, the company is now forced to take stronger steps to ensure optimal fund utilisation," Uninor said in a statement.

"Our plan now is to enter the auctions with a very strong presence in these nine circles, auction rules permitting," Sigve Brekke, the unit's managing director, said in the statement.