BROUHAHA IN THE PHONEBUSINESS

In earlier columns here we have written about the venture in the phonebusiness that Telenor has in India in a joint venture with Unitech Wireless, Uninor. The last few days the saga has gotten all the more serious by the Supreme Court decision recently that licences of a number of mobile operators, among them the Telenor subsidiary Uninor's, will be cancelled in about 4 months.

THIS IS SERIOUS FOR ALL THE OPERATORS AFFECTED, BUT ALL THE MORE SO FOR TELENOR, WHO HAS INVESTED SOME 15 BILLION NORWEGIAN KRONER IN THE VENTURE, AND IS WAY AHEAD OF THE OTHER AFFECTED COMPANIES IN NUMBER OF SUBSCRIBERS, AND SIZE OF INVESTMENT.

SEVERAL NORWEGIAN INITIATIVES, ALSO ON GOVERNMENT LEVEL, ARE BEING MADE, AND THE OUTCOME IS NOTHING IF NOT EXCITING.

ONE WILL RECALL THAT WHEN THE DECISION TO ENTER THE EXTREMELY COMPETETIVE PHONEINDUSTRY IN INDIA, THE PRIVATE SHAREHOLDERS OF TELENOR WERE MASSIVELY AGAINST THE VENTURE, AND THE SHARE GOT A BEATING IN THE MARKETPLACE WHEN THE DECISION WAS ANNOUNCED SOME 3 YEARS AGO.

AT THE PUBLICATION OF THE QUARTERLY REPORT EARLIER THIS WEEK, A LOSS ON THE INDIA INVESTMENT WAS DENTING AN OTHERWISE DECENT RESULT.

WE WILL TRY TO FOLLOW THIS VERY INTERESTING AND TO SOME, SCARY, DEVELOPMENT AS BEST WE CAN !