Telenor settles Unitech dispute

Norwegian operator group Telenor has finally reached an agreement with Indian partner Unitech to settle all disputes regarding their failed joint venture in India, Uninor.

Unitech has agreed to dispose of its shareholding in Uninor for a nominal amount, signalling an end to the long- running saga. The two firms said they were unable to provide any further detail around the terms and conditions of the settlement.

Uninor will morph into a new entity, called NewCo, which will be owned by Telenor. The operator group said that it is making preparations for the upcoming 2G spectrum auction, although a final decision on whether NewCo will participate will be made at a later date.

All disputes and claims between the parties shall stand withdrawn or concluded as a result of the settlement, the two firms said.

All 2G licences awarded in a 2008 spectrum sale, including Uninor’s, were revoked by the Indian Supreme Court in February, due to corruption in the sales process of the licences.

Telenor attempted to auction off its stake in Uninor earlier this year, in an attempt to cut its ties with its Unitech, but a court in India blocked the move.