Telenor India will not participate in the upcoming spectrum auction, which is in line with its earlier announcement indicating exit from the country. The company recognizes the significant operational and financial improvement delivered by their Indian operation. However, after thorough consideration the company has decided not to participate in the upcoming spectrum auction, as the proposed spectrum prices do not give an acceptable level of return. While announcing the March quarter results, the company had said that its long-term presence in India is dependent on its ability to secure additional spectrum.
The government is planning mega-spectrum auction in which airwaves worth Rs.5.66 lakh crore will be up for the bids. As per global telecom industry body GSMA, the total value of spectrum auction at base price is more than 20 times the annual free cash flow of the entire mobile industry in India and almost double the cost of all spectrum investments to date in the country.