Indian Supreme Court order results in Uninor’s business closure in Mumbai

While continuing in the circles of Maharashtra and Goa, Gujarat, UP East, UP West, Bihar and Jharkhand and Andhra Pradesh, Uninor closed down its operations in the Mumbai telecom circle. This followed the Indian Supreme Court’s order that asked all operators who did not win spectrum in the November auctions to close down services immediately. No mobile operator had bid for spectrum in Mumbai in the first round of auctions due to an unreasonable reserve price.

Telenor Group had later showed interest in taking part in the second round of auctions for spectrum in Mumbai, provided a change in the auction rules including the reserve price. With the discontinuity of services now and loss of subscriber base, bidding for fresh spectrum in the circle will no longer be possible.

“We have pursued every alternative possible to continue our operations in Mumbai until the new auction takes place. Now the Court has ordered an immediate closure of services and no temporary license too is available to allow a gradual process. Unfortunately, we have no choice now but to follow the Court’s order and close down our network immediately,” said Sigve Brekke, Managing Director of Uninor.

“I deeply regret the consequences this has for our customers, employees and business partners – each of whom have been a part of a remarkable fight back last year. We will now make every effort, within the limitations of this Court order, to minimize the negative impact on all affected by this development”, he added.

Uninor has also simultaneously closed down operations in other circles where the operations had already been scaled down to minimum last year.

In the six circles of Maharashtra and Goa, Gujarat, UP East, UP West, Bihar and Jharkhand and Andhra Pradesh, Uninor operations will continue as fresh spectrum for 20 years has already been secured. Together, these circles represent a sizeable opportunity for growth. Uninor has also signed roaming agreements to ensure that all its customers get seamless connectivity when travelling to Mumbai.