Telenor, world's 7th largest telco, comes calling

Top team from Norway-based company talks to new licensees for possible majority stakes.

Norway-headquartered Telenor, the world's seventh largest telecom company, is planning to enter the Indian mobile services businesses.

A high-level team from the company was in India over the last few days and has held talks with several of the new GSM-technology licence-holders for possible majority stakes.

With a subscriber base of over 143 million, Telenor is one of the few European companies to show an interest in the Indian market after the government gave licences to over seven new operators to start mobile services this year.

The government recently gave licences to various new companies, which include Datacom Solutions, Unitech, Swan telecom and S-tel, among others. An e-mail questionnaire to Telenor did not elicit a reply.

European companies except Vodafone have shied away from the Indian mobile services market despite being pioneer entrants.

A few years ago, European telecom major France Telecom sold its 33 per cent stake in Idea Cellular, and British Telecom sold its 44 per cent stake in Bharti Cellular.
 

A SNAPSHOT OF THE TELENOR GROUP

* The world’s seventh largest telecom company 

* More than 143 million subscribers with stakes in over 12 mobile operations in Asia and Europe 

* Operates in countries like Denmark, Sweden, Ukraine, Hungary, Serbia, Montenegro, Norway, Bangladesh, Pakistan, Malaysia, Thailand and Russia, among others

* Generated revenues of $17 billion in 2007

The only European player with a direct presence in the country is the UK telco Vodafone, which bought the 66 per cent stake owned by Hong Kong-based Hutchison in its joint venture with Essar.

Telenor owns 53 per cent in Bangladesh mobile service operator GrameenPhone with an over 53 per cent market share. Telenor also owns Telecom Pakistan.

In Thailand, the Norway-based company owns the second-largest mobile company dtac while in Malaysia it owns 49 per cent in DIG.com Berhad with over 6.5 million subscribers.

India is currently the world’s fastest growing mobile services market with over 200 million subscribers. In July, the country added 9 million subscribers.