Telenor can bid for spectrum only with Uninor: Court

Local court in Gurgaon restrained Norway's Telenor from participating in auction of spectrum.

A local court in Gurgaon near here has restrained Norway’s Telenor from participating in auction of spectrum in association with any firm other than Uninor,which is its joint venture with Unitech.

The District Court of Gurgaon,on a petition of Unitech,had earlier this week injuncted Telenor from “participating,negotiating,engaging in or financially being interested in the auction processes conducted by the government/government agencies for fresh allotment of licenses/spectrum,other than through respondent no.1 (Unitech Wireless)”.

Telenor holds 67.25 per cent stake in Unitech Wireless,which operates under the brand name ‘Uninor’. Realty firm Unitech holds the remaining 32.75 per cent in the company.

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The relationship between the two partners got strained after the Supreme Court cancelled 122 licences,including Uninor’s 22. Telenor wants to dump Unitech and participate in the auction of spectrum with a new partner.

Telenor on Tuesday moved the Punjab and Haryana High Court against the Gurgaon court order.

“The Punjab and Haryana High Court has today directed the Gurgaon District Court to finalise its proceedings before September 20 regarding the matter of Telenor Group’s participation in the spectrum auction,” a spokesperson for Telenor said in a statement.

“Next hearing in Gurgaon District Court will be on September 4. We will continue to argue our case in court,” the spokesperson added.

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Telecom companies interested in buying spectrum through auction will have to submit their application by October 19 and the bidding for the airwaves is scheduled to start from November 12. The Supreme Court has extended validity of cancelled licence till Januray 18,2013.