Telenor's Indian JV to incur up to 6.5 bn kroners capex

FORNEBU/NEW DELHI: Norway-based telecom firm Telenor, which has acquired 60 per cent stake in Unitech Wireless, today said it expects the Indian joint venture to incur a capex of 5.5-6.5 billion Kroners (about a one billion dollar) in 2009.

The Norwegian operator, which announced its quarterly results ending December today, said: "Telenor expects that the investment in India will contribute with marginal increase in organic revenues, an EBITDA loss in the range of 22.5 billion Norway Kroner and capex in the range of 5.5-6.5 billion Kroner for 2009."

Detailing on the funding of Indian investment, Telenor's President and Chief Executive Officer Jon Fredrik Baksaas said, "We have decided that the investment in Unitech Wireless in India will be financed through a combination of cash generated from operations and additional debt."

Telenor has decided to propose no payment of dividend to shareholders for 2008. It is further the intention of the Board that no dividend will be proposed for 2009. This underlines the need for strong focus on cash flow in operations, Baksaas said.