Telenor-Unitech JV rules out 3G services, to start 2G in '09

Norwegian telecom giant Telenor, which recently picked up 60 per cent stake in Unitech Wireless, today said the company will not participate in 3G spectrum auction, and launch 2G services next year.

"As of now we are looking at 2G services," President and CEO of Telenor Jon Fredrik Baksaas told PTI when asked about its plan on the upcoming 3G spectrum auction. In fact, Telenor has planned a $2 billion capex over the next three years without factoring in 3G licences.

"Telenor-Unitech venture has set an ambitious target of capturing 8-10 per cent market in the next eight years, and the hunt for vendors has started," he said.

Baksaas further said that the company had already started talks with infrastructure providers to roll out services.

"Although, the country is adding over 9 million subscribers every month, the penetration level is quiet low, at around 20 per cent. So it offers huge opportunity for us," the Telenor chief said.

Telenor would invest Rs 6,120 crore over the next 12 months to subscribe to new shares in Unitech Wireless, which represents a 60 per cent share of the increased equity of the latter.

However, Baksaas declined to divulge details on how the telcom venture would be branded.

"We are working on the branding process, we are yet to come up with our marketing strategies," he said. The joint entity is betting big on Telenor's experience in serving the rural market.

Headquartered in Oslo, Norway, Telenor is an international telecom service provider, and data and media communications services. It is one of the Norway's largest companies, owned 54 per cent by the Ministry of Industry and Trade, Norway.