Already Alcatel-Lucent has won a huge contract of 1 billion USD for RCOM for 7 years  managed services in India & now it has won contract for managed and transformation services to Telewings Communications Private Limited a total own unit of Telenor Company operating in India, but this service for Alcatel-Lucent will be operating in 3 circles like Gujarat, Maharashtra and Andhra Pradesh covering over 250 million subscribers.

Key Facts:

• Telewings will benefit from Alcatel-Lucent’s proven experience and delivery model, ensuring customers have the highest quality network experience possible.
• Alcatel-Lucent will leverage its global managed services expertise and tools to deliver network transformation services focusing on improved customer experience management and operational efficiency.
• Bell Labs, the research organization within Alcatel-Lucent, will provide expertise on network and business modeling to achieve Telewing’s transformational objectives.
• Alcatel-Lucent will deploy established standards-based network performance tools and expertise to improve and transform existing networks.
• As a leader in transformation and managed services, Alcatel-Lucent has a proven track record of supporting customers through highly skilled and experienced local presence, along with the benefit of a company with global scale.

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Norwegian biggie operator named as Telenor has put forward a letter for reducing the GSM Spectrum prices on the upcoming auction to be held by Communication & Information Ministry. As the Telenor is operating under name Uninor brand & in their letter to the ministry the company had told that it will impossible to take part in the auction with such high prices.

As per some reports Telenor/ Uninor has asked the Govt. to reduce the price of GSM Spectrum for rhe auction similar to that of CDMA spectrum. Likely Govt. has reduced CDMA Spectrum auction by 50 percent that of GSM Spectrum auction by 30 percent after such a terrific response from those operators participated in the last auction in November 2012. The Govt. has set the base price to Rs 14,000 for 5 Mhz in the last auction, especially the price were considerably high for the Delhi, Mumbai, Rajasthan and Karnataka circles.

Sigve Brekke Executive Vice-President and Head of Asia Operations for Telenor told to the Govt. that if the prices set for the GSM Spectrum is so high then this cost will put the telecom operators out of auction.

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Finally it’s the end of dispute between Unitech Wireless Ltd & the Norwegian Tel co giant Telenor with the former agreed in the terms to dispose its entire share in Uninor.
On October 10^th 2012 both the companies have reached an agreement about settling all disputes as per statement given by Unitech.

Ramesh Chandra of Unitech told in a report that “We are pleased with the settlement reached between Unitech and Telenor. All existing disputes with Telenor are suspended and will be withdrawn upon successful transfer of business of Uninor to a new entity controlled by Telenor.”
Telenor had wanted to scrap the joint venture and migrate the business to a new company to seek fresh operating licenses as Uninor’s 22 telecom permits were among the 122 quashed by the Supreme Court in February.

TELENOR

Telenor after the SC verdict had served a notice to Unitech seeking compensation from Unitech. Telenor holds a little over 67% in their JV which offers mobile services under the Uninor brand while Unitech owns the rest.
As per the agreement, Unitech and Telenor have agreed to transfer the business in Unitech Wireless (which operates under Uninor brand) to a new entity controlled by the latter. Unitech said it has “agreed to dispose of its shareholding in Uninor for a nominal amount” and its nominees will withdraw from the Uninor Board with immediate effect.
The statement said that subsequent to a successful business transfer and spectrum auction, all disputes and claims between the parties would be withdrawn.

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ZTE Corporation (“ZTE”) a foremost global supplier of telecommunications equipment and network solutions, has sign a worldwide frame contract with Telenor to provide ZTE power systems for the operator’s base stations. According to the contract, ZTE will have the occasion to offer nine Telenor business units (with Norway, Sweden, Denmark, Hungary, Montenegro, Malaysia, Thailand, Pakistan and Bangladesh) with DC power systems (rectifiers) through to the end of 2013.

Telenor Group is one of the leading mobile operators in the world, with 140 million mobile subscribers and mobile operations in 11 markets, as well as a 31.7 percent stake in VimpelComwhich operates in 19 additional markets.

In the last few years, as telecoms industry competition has intensified, low total cost of ownership (TCO) has become the key factor for operators’ long-term stable development. Bulk procurement has been adopted by more and more mainstream operators to optimise purchase costs. As the largest mobile service provider in Northern Europe with the fastest rate of subscriber growth in the world, Telenor Group began the centralised procurement of power systems last year, to obtain the best combination of price and performance for power solutions in different markets from long-term suppliers.

ZTE proposed high-efficiency DC power systems optimized according to the low TCO design concept set out in ZTE’s ‘Efficient Matrix’. This solution combines the most advanced high-efficiency modules with compact design, reducing both space requirements and power consumption. In addition, ZTE’s advanced intelligent network management system can effectively lower the human resource requirements for product maintenance, further reducing TCO.

ZTE was selected for the quality of its solutions, and for its understanding of the requirements of different business units across the Telenor Group, which enables ZTE to provide customized solutions to each country.

“We are extremely glad to partner with Telenor and will endeavor to provide the most reliable power product and solutions, helping it to win larger markets and achieve faster growth,” said Li Guangyong, General Manager of ZTE’s power product line.

ZTE’s power products have maintained industry-leading growth momentum in recent years. The company has ranked first in the Chinese telecom power market for several years and is in the top five in the global market. ZTE has established partnerships with 385 operators in 136 countries for its power products and is expanding in the European and American markets, while steadily developing markets such as China, Asia Pacific, Southeast Asia and Africa.

Press Release from ZTE.

Norway’s Telenor has informed it will depart from India if the government admit the telecom regulator’s suggestion to auction airwaves at 13 times the price used in 2008, highlighting the indecision shrouding a sector till lately seen as a poster child for liberalization. 

Telenor intimidate to door out India if govt accepts Trai's suggestions

The head of the company’s Asia unit said it would be “impossible” to continue operations in the country of more than a billion people, in which it has invested over $3 billion since buying a majority stake in the telecom business ofUnitech, a Delhi-based real estate company, in 2008.

“If these recommendations become policy, we will be forced to exit India. It will be impossible for us to continue operations here,” Telenor Executive Vice-President & Asia head Sigve Brekke said in an interview. “This is not a threat, it is a reality,” he said.

Brekke’s comments come just a day before the Telecom Commission, the highest decision-making body in the sector, meets to decide on the recommendations put forward by the Telecom Regulatory Authority of India.

But two analysts said quitting India would impact Telenor’s growth potential as the Scandinavian telecom major has been depending on Asian and emerging markets for growth, with business in Europe, its main territory, declining.

“The India exit will mark a monetary loss, but will also mean a three-year setback to Telenor on growth in the next two years,” said one. They asked not to be named.

Telenor had forecast a breakeven for Uninor, its Indian unit, in 2013.

Not in line with SC orders, says Brekke
Telenor’s India operations were among the worst affected by the Supreme Court’s February 2 order quashing licences awarded in the controversial 2008 sale by former telecom minister A Raja. The court asked the government to issue new permits through an auction.

Trai last week recommended that the government auction 5 MHz of airwaves in the 1800 MHz band in which Telenor operates, a quantum of airwaves sufficient for only one company to operate, though nine companies have lost licences after the court decision.

The regulator also said mobile phone companies will have to pay a minimum Rs 3,622.18 crore for every unit of 2G spectrum, a 13-fold increase over what they paid in 2008 when Raja dished out pan-India permits that came bundled with 6.2 MHz of 2G spectrum for Rs 1,659 crore. Trai further said the first round of auctions would help establish the value of airwaves, which would be used as the base price for the next round to be held in 2013.

Brekke, who is also the head of the Scandinavian company’s India operations that offer mobile services under the Uninor brand, said Trai’s recommendations were not in line with the Supreme Court’s orders.

“The Supreme Court said new licences should be given through auctions. But according to Trai’s recommendations, only one licence, and not licences, can be issued. Even this is theoretical as incumbents can take away spectrum in the first round of auctions and companies like us are therefore finished,” he said.

“The main focus of the recommendations is refarming (redistribution) of airwaves in the 900 MHz band. To accommodate this, Trai has said only 5 MHz of airwaves in the 1800 MHz band can be auctioned. This is not what the court ordered. The SC simply said re-award the new licences through auction. The SC couldn’t be any clearer,” he reiterated.

Trai has recommended that incumbent operators such as Bharti and Vodafone surrender a part of their airwaves in the 900 MHz band by 2014 and replace it with spectrum in the 1800 MHz band. As a result, it has not recommended the auction of airwaves freed up after the Supreme Court-ordered cancellations. Brekke said while issues like spectrum price are of concern, Telenor may not even wait for price discovery in the auction, given the nature of the recommendations.

Rollout obligations impossible to meet
The Uninor MD said the company’s primary concern was the quantum of airwaves to be auctioned as well as requirements that the company establish its presence in a certain number of locations, known as rollout obligations.

“With 5 MHz, the government would be setting a deliberate policy to reduce competition that has brought affordability. Auctioning 5 MHz when more than 20-30 MHz is available is nothing but creating an artificial scarcity to jack up prices. This will be the smallest spectrum auction in the world,” he added.

Brekke added that Telenor would not be able to continue operations if the government insisted on imposing Trai’s rollout obligations.

“It isn’t logical to ask each operator to set up its own tower in every village when this is done smarter through collaboration and sharing between operators. Why use last decade’s mindset to solve this decade’s priorities?”

Uninor would require an additional 120,000 towers to meet the rollout obligations, making its business here unviable, Brekke said.

Brekke also slammed Trai for setting a steep price for airwaves. “We are being charged high spectrum prices and asked to recover them by using this spectrum for 3G and LTE (since this is liberalised spectrum) instead of using it for basic voice telephony that 90% of India uses. This is equivalent to taking from the masses and giving to the classes and goes against the political intention of the government,” he added.

The Trai recommendations enable telecom operators to use airwaves for all purposes, including data, to recover costs. However, for most operators, this implies massive replacement of infrastructure, which is unviable, Brekke explained.

Some of the mobile phone companies plan to file a fresh petition in the SC, stating that Trai’s recommendations are against the court’s orders, according to people familiar with the plan.

Brekke said he had ‘heard of this plan’ and added that ‘Uninor had not yet decided to be party to this petition’.

The Supreme Court last week ordered the government to conduct 2G spectrum auctions and grant licences by August 31, rejecting the Centre’s plea that it required 400 days to complete the process, even as it allowed the nine mobile companies whose licences were cancelled earlier this year to continue operations till September 7, extending its earlier deadline of June 2.

“The regulator seems determined to complicate this and bring in every telecom issue it possibly can. If this is what the SC wanted, then 400 days would have been allowed. But it wasn’t,” Brekke said. For now, the apex court seems to be done with its guidelines, and little more can be awaited on that front, he added.

ET reported last week that the DoT may first examine Trai’s recommendations to auction 5 MHz of airwaves in the 1800 MHz band and later consider the other proposals submitted by the regulator.

Some sections of the telecom department are of the view that setting aside most of Trai’s proposals and focusing solely on auctioning 5 MHz of airwaves will enable the government meet the August 31 deadline set by the Supreme Court. But this will result in a limited auction, and not the re-auction of all the airwaves vacated due to the cancellation of licences by the apex court.

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The Unitech-Telenor matter residue complicated.

Prior to this, it was reported that the company Law Board (CLB) had accepted of Unitech’s appeal to endeavor to decide the issue through international arbitration in Singapore.

Unitech had advance the CLB beneath the requirements of the Arbitration and Conciliation Act in situation of its chance dispute with Telenor. The valid assets major had conversant the CLB that arbitration was essential to decide the argument.

The company had disputed that Telenor had commence the settlement process as per the provisions of the Share Subscription Agreement. This was done to attain insurance. However, at the same time, the Norwegian company was withdrawing the Share Holders Agreement. This, argued Unitech, was unrealistic, as both agreements were overlapping.

However, Telenor was intensely serious of Unitech’s attempts to attain arbitration on the matter. It was allegedly allowing for filing a request in this context.

Now, Unitech has demand the Delhi High Court to give it an occasion to present its quarrel before it approved its decision on Telenor’s request.

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The Unitech-Telenor matter has curved in support of the former.

CLB endorse Unitech's demand to resolve the matter through international arbitration

Unitech had move toward the Company Law Board (CLB) beneath the provisions of the Arbitration and pacification Act in perspective of its bet argument with Telenor. The valid assets main had conversant the CLB that adjudication was essential to determine the quarrel.

The company had argued that Telenor had initiated the mediation procedure as per the requirements of the Share Subscription Agreement. This was done to attain protection. However, at the same time, the Norwegian company was rescinding the Share Holders Agreement. This, argue Unitech, was impossible, as both agreements were overlapping.

However, Telenor was extremely serious of Unitech’s efforts to attain settlement on the problem.

On its part, Telenor had quarrel that arbitration was needless, as the matter is already being heard by CLB.

Now, the CLB has permitted of Unitech’s demand to effort to decide the matter through international arbitration in Singapore.

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The Unitech-Telenor risk matter continues.

According to news reports, Unitech has inquired a Gurgaon area court to bar Telenor from forming a latest joint venture to persist operating in the Indian telecom space.

Unitech asks Gurgaon court to bar Telenor from forming a new joint venture

Also, Unitech has expressed its reservations over Telenor transferring its shares (currently in Uninor) to the new entity.

The two companies have been involved in a stake dispute for quite some time now. The case is currently being heard by the Company Law Board (CLB).

Prior to this, Unitech was attempting to obtain arbitration on the issue. Unitech had informed CLB that arbitration was necessary to resolve the dispute.

The company has argued that Telenor had initiated the arbitration process as per the provisions of the Share Subscription Agreement. This was done to obtain indemnity. However, at the same time, the Norwegian company was rescinding the Share Holders Agreement. This, argued Unitech, was impractical, as both agreements were overlapping.

However, Telenor has been criticising Unitech’s attempts to obtain arbitration on the issue.

Telenor had argued that arbitration was unnecessary, as the issue is already being heard by CLB.

This was in response to Unitech approaching CLB under the provisions of the Arbitration and Conciliation Act in this context.

Meanwhile, in a move that may have implications for the ongoing Telenor-Unitech case, the Income Tax (IT) Department has taken over the shares of Simpson Wireless, Cestos Wireless and Acrous Wireless.

Unitech obtained its stake in Uninor via these three entities. It had sold 67.25 per cent stake in Unitech Wireless (which had obtained 22 telecom licenses), to Telenor for $1.2 billion. Subsequently, the Rs 10 share was transferred at a premium to Telenor.

Also, the IT Department has informed the Company Law Board that these companies had outstanding dues of Rs 7.01 billion. The Department has said that the premium on their current stake in Uninor counted as “capital gains”.

Responding to this, the real estate major has issued a statement saying that its group firms have approached the Commissioner of Income Tax against this order. The companies have argued that the order was based on the “presumptive gains” on their shareholding in Unitech Wireless. The companies have also said that actual gains on the stake would be accrued only when the stake was sold.

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Britain’s Vodafone Group might appeal to a little-known asset pact between India and the Netherlands that will permit it to maintain back taxes it may be required to pay establishment once Parliament clears a new legislation to tax past transactions. 

Tax case: Vodafone may cite breach of treaty

Offering for the first time a peek into the strategy the world’s biggest mobile operator could adopt in case it is forced to stump up some $2.3 billion (Rs 12,000 crore) in taxes, a person familiar with Vodafone’s thinking said it could bring a counterclaim against the Indian government by invoking the Bilateral Investment Treaty between India and the Netherlands.

This person said the company believed that while the government’s planned change in the tax laws could help make its claim valid under Indian law, it would run afoul of the treaty. If Indian tax authorities enforce the payment of tax by Vodafone, the UK firm believes it would constitute a breach of the treaty, allowing it to claim back damages of an equal amount from the government as compensation, the person added.

A Vodafone spokesman confirmed the group was “urgently considering a number of courses of action, both in India and internationally”, but did not give details. The company has said the proposed changes in the law contradict the Supreme Court and “raise important constitutional questions for India as well as widespread and profound concerns in the minds of international investors”.

Vodafone’s Indian arm is the country’s third-largest operator with some 150 million users. The tax claim pertains to Vodafone’s 2007 acquisition of a nearly 67% stake in Indian mobile operatorHutch Essar from Hong Kong-based Hutchison Telecom for $11.2 billion. Although the deal, executed between a Netherlands-based subsidiary of Vodafone and a Hutchison unit, was sealed overseas, Indian tax authorities argue that the underlying asset was based in India and that Vodafone should have deducted capital gains.

They have sought to recover the amount from the UK group. The government’s annual budget for 2012-13 proposes to amend income-tax rules allowing the government to retrospectively (from April 1, 1962) tax crossborder share sales in which the underlying asset is located in India.

The legislation, once passed by Parliament, could potentially overturn a recent ruling by the Supreme Court that struck down the government’s tax claim against Vodafone. In January this year, Vodafone won a four-year legal battle against the government when the Supreme Court ruled that it did not need to pay the Rs 12,000 crore in taxes because the transaction took place between two overseas firms and there was no provision in Indian law to tax such deals.

Last week, the court declined to entertain the authorities’ plea to reconsider its January ruling, and the government has subsequently refunded with interest an amount of Rs 2,500 crore deposited by Vodafone in November 2010. The dispute between the company and the income-tax authorities is being closely followed locally and internationally and its final outcome, some experts say, could affect India’s image as an investment destination.

The Indian government does not share this view and says the planned change in the law is only meant to clarify tax rules for such transactions in the past and future. The passage of the legislation could impact companies such as AT&T and GE that have carried out transactions in which a significant part of the assets is in India.

Vodafone‘s threat to take the battle with the government to overseas jurisdictions is the latest in a series of similar threats. A raft of other telecom companies have also threatened international arbitrations proceedings against India, albeit on a different issue.

Russian conglomerate Sistema had threatened India with international arbitration proceedings if the government failed to resolve the fallout of a Supreme Court verdict of February 2 that cancelled 122 mobile permits issued in 2008.

Norway’s Telenor has also sought ‘compensation for all investment, guarantees and damages’ if India failed to sort out issues related to its licence cancellation in the next six months. The Supreme Court verdict on the so-called 2G scam case will annul all the permits held by Telenor’s joint venture in India and all but one permit of Sistema’s Indian telecom venture.

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Realty company Unitech on Thursday told Company Law Board (CLB) that its quarrel with Norwegian firm Telenor over their combined venture Uninor was vigorous case for settlement.

Row with Telenor fit for arbitration: Unitech

Unitech counsels during argument told CLB that Telenor, which holds majority stake in Uninor, had invoked arbitration under Share Subscription Agreement to seek damages and indemnity, but was rescinding Share Holders Agreement.

“They (Telenor) for indemnity clause have invoked Arbitration under SSA (Share Subscription Agreement)… but they are rescinding SHA (Share Holders Agreement). These two agreements are completely intervened and they can not accept one and rescind other,” Unitech Counsel said.

Telenor has held Unitech responsible for the breach of warranties related to the cancellation of JV firm licences by SC and wants to the realty from Uninor after the verdict. It has served notice to Unitech for indemnity claim. Unitech Counsel said that notice served for indemnity claim by Telenor to the company accusing it of fraud and misrepresentation has frequently referred to SHA. Unitech has approached CLB seeking status quo in Uninor, and not allowing transfer of its assets to any other company without its consent, and moved a petition in the CLB under provisions of ‘Arbitration and Conciliation Act’.

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