The highly competitive Indian telecom market and the resulting rock-bottom pricing plans has had a casualty. Telenor ASA (PINK:TELNY, OSL:TEL ), the Scandinavian telecom company that made its debut in the Indian market as Uninor, is learned to mulling a pullout from the country where the company has seen a massive $556 million operating loss since inception. A major reason for this is said to be the aggressive pricing wars led by market leaders like Airtel that has seen it extremely unaffordable for new entrants to make their mark in the Indian market.
Telenor executives are expected to huddle up in Oslo on September 21 on the sidelines of the annual investor meet to make a final call on their India venture. Uninor currently holds a 0.95% market share in India with close to 6.02 million subscribers.
The board expected its India venture to break even within a three year duration. However, with the company’s bleeding losses unlikely to result in a break even so soon, investors have been pressurizing the board to quit their India venture that will finally see an announcement later this month.