Auction not end of story, other options available: Uninor

The company said a decision regarding the future strategy will be taken only after govt comes out with clear rules regarding spectrum sharing or trading and M&A

Telecom operator Uninor, which did not buy additional spectrum in the recently concluded auction, will look to acquire radio waves through other options, including acquisition or spectrum sharing as per business requirement.

"Don't assume this auction is end of the story. We have strong business model, which is giving us growth, and we don't see any issue in this model not performing for the next couple of years," Uninor CEO Vivek Sood told PTI.

The company, owned by Norwegian firm Telenor, participated in the auction but did not buy any spectrum. It has permit to operate in seven out of 22 telecom circles and had 4.4 crore subscribers at the end of January.

Sood said a decision regarding the future strategy will be taken only after government comes out with clear rules regarding spectrum sharing or trading and M&A.

"In an uncertain environment (with regard to consolidation, M&A, spectrum trading and sharing), it is difficult to say how we will progress. Our focus is mass market approach - affordability is key, which has helped us gain customers. We will continue to do that," Sood said.

Industry players have appealed to the government to review the M&A rules.

Currently, Uninor operates in six areas - Andhra Pradesh, Bihar, Gujarat, Maharashtra, Uttar Prdesh East and West. The company will start its operations in Assam by end of this year, Sood said.

"There are other options available (to expand). We have to find solution over the next two years to get more spectrum which is data spectrum. There are different options for getting spectrum - it can be through auction, M&A, spectrum sharing, spectrum trading or another auction. The decision will have to be made by us in the next two years," Sood said.

In the meantime, he said, the company is upgrading its network to cater to the rising demand. The company has plans to modernise all of its 24,000 mobile towers.

"We need to invest in new technology so that it is not only future ready but also much more efficient. Existing BTS have also to be changed. We will do it in next 1-1.5 years," Sood said.

There have been reports that Uninor may acquire a local private telecom operator which is running in losses.