The Uninor management has decided to focus its resources by strengthening nine of its 13 commercially active circles in light of the continuing uncertainty around the auctions. This will result in a gradual scale-down of operations in Karnataka, Tamil Nadu, Kerala and Orissa circles and a simultaneous strengthening of operations in the circles of UP East, UP West, Bihar & Jharkhand, Kolkata, West Bengal, Andhra Pradesh, Mumbai, Maharashtra & Goa and Gujarat. This will place the company in a stronger financial and operational position to enter the auctions from, rules permitting.
Following the license cancellation in February, Uninor has faced an uncertain environment that also affects ability to secure operational funding. With lack of clarity around the auctions continuing, the company is now forced to take stronger steps to ensure optimal fund utilization.
Sigve Brekke, MD, Uninor said, “Since the Supreme Court order, we have pursued every possible measure to take our business forward in its current form. However, we are now forced to take this difficult but necessary decision. Our plan now is to enter the auctions with a very strong presence in these nine circles, auction rules permitting. We will focus funds, resources and all our efforts to meet even more aggressive targets in these nine circles.”
Network in these four circles remains operational and the scale down of operations in these circles will be gradual. Uninor will give all its existing customers a 30 day notice before any network scale down is expected to begin. However, the company will stop activation of any new subscribers in these four circles of Kerala, Karnataka, Orissa and Tamil Nadu with immediate effect.
