Telenor deal after value creation: Unitech

Under attack for sealing a deal with a Norwegian company, reality major Unitech today alleged that competitors were creating a needless controversy over majority stake sale in the telecom venture where they have already invested over Rs 4,100 crore.

Responding to clarification sought by the government over the deal, wherein 60 per cent stake was sold to Telenor for over Rs 6,100 crore, Unitech explained that it was not taking a premium on spectrum as it had sought to create value before the deal.

There have been many misleading reports to show the partnership between Unitech Wireless and Telenor in a negative light, prompted possibly by the "vested interests" of competing forces interested in creating barriers to the entry of respected, world renowned players, Unitech said in a letter to Telecom Secretary Siddhartha Behura.

Ever since the government has issued new licences for enhanced competition in the mobile telephony, the existing operators led by Cellular Operators Association of India (COAI) has been critical of the move and has attempted to stall the process of allocating spectrum to new players despite the fact that all demands of existing giants for the radio frequency have been met.

The company has explained to the Department of Telecom (DoT) about the status of the telecom project saying that radio planning was already completed in five circles and was in full swing in another eight circles where spectrum has been allocated.

"As on September this year, the total expenditure of Unitech Wireless comprising of the entry fee and expenses incurred on project stood at Rs 2,100 crore.