To close ops in circles with no spectrum by Jan: Telenor

Uninor will shut down operations in circles where it does not manage spectrum by January 2013. In an exclusive conversation with CNBC-TV18's Malvika Jain, Jon Fredrik Baksaas, CEO of Telenor group said he is confident that licensee fee paid by the company in 2008 is adjustable.

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Below is the edited transcript of his interview to CNBC-TV18.

Q:  Are you looking for a refund?

A: We believe very strongly that we are eligible for a refund. All obligations have been transferred between the two entities. So, we believe very strongly it is going to be okay and also we are awaiting the Department of Telecommunications (DoT's) confirmation on that.

Q: You are saying that you are not in talks with the Mahindras or the Tatas or anybody else at this stage, what happens to your existing customers. On January 13 your licenses are going to stand quashed as per the Supreme Court's directive and there is a one-month period before, which you must inform your customers where they stand, so in circles like Mumbai and Kolkata and West Bengal what happens to the customers?

A: If there are no frequencies by mid-January then we will do as you say namely inform our customers by the timeline in December that our licenses will go away in mid-January that's according to the procedures. Unfortunately, the reserve price in Mumbai in particular is standing so high that for us to even think about that in the first round was not possible.

Q: So if the reserve prices are lower I understand that you might consider participating for Mumbai. However, right now there is no decision that you have taken and as things stand today if you are not able to bid spectrum before the December 13, you are going to call it a day as far as Mumbai, Kolkata and West Bengal are concerned?

A: And again if your government comes forward with some new ideas on a second round of auction, which is being speculated about, we will take a look at it. As per now we are where we were with 6 circles.

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