"If these recommendations become policy, then the Government of India will be forcing Telenor Group to exit. It will be almost impossible for us to participate in the upcoming auctions," Telenor Group Executive Vice President Sigve Brekke said in a statement.
Also, the company in a filing to the Oslo Stock Exchange said it will write down USD 682 million (Norwegian Kroner 3.9 billion), thereby bringing its accounting exposure in India to nil.
Telenor holds around 67 per cent in telecom venture Uninor with the rest of the stake being owned by Unitech.
"Following the Supreme Court's ruling in February to cancel Uninor's licences and the recent recommendation from Trai regarding the 2G licence re-auction, the uncertainty has increased significantly," Telenor said.
"As a precautionary measure, Telenor ASA has decided to write down the remaining fixed and intangible assets in India amounting to NOK 3.9 billion (NOK 2.6 billion after non- controlling interests)," it said.
The write down will be included in Telenor's results for the first quarter 2012, to be presented on May 8, 2012.
"After the write down, Telenor has no further accounting exposure related to India as of March 31, 2012," it added.
Trai on April 23 recommended a base price of Rs 3,622 crore for a megahertz of pan-India spectrum, which is around 10 times higher than the price 2G licences were allocated in 2008 during the tenure of the then Telecom Minister A Raja.