Telenor to include 4.2 billion kroner writedown in India

Telenor to include 4.2 billion kroner writedown in IndiaTelenor ASA has said that it will include a 4.2 billion kroner writedown in India in its fourth-quarter following a ruling from the Supreme Court is India that cancelled 122 telecom licenses in the country.

Telenor had sort help from the Norwegian government to protect its investment in India after the ruling by the apex court in India. The company has said that it will fight to protect lawful investments in India and also said that Norwegian government is aiming to find a solution to the issue.

The Supreme Court of India has scrapped the validity of all 122 spectrum licenses that were granted to telecom firms during the former communications minister A Raja's time in office.

The court cancelled all the licenses on the ground they were issued in a "totally arbitrary and unconstitutional" manner. It also imposed a fine on three telecom companies that offloaded their shares after getting the licenses.

The Telecom Regulatory Authority of India (TRAI) has also been directed to make special recommendations on allocation of 2G licenses. The bench comprising bench comprising justices G S Singhvi and A K Ganguly has asked the government to take steps on recommendations of TRAI and has said that new auction will take place in four months.

Telenor believes that its investment and its 36 million customers are threatened by the ruling in the county. The company might be forced to spend more to regain its alicences.