| | By Examiner Staff @ Saturday, March 21, 2009 6:32 AM
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| | Norwegian telecom group, Telenor has picked up an initial 33.5 per cent stake in Indian operator Unitech Wireless for $250 million, Telenor said on Friday, marking its entry into the world's second largest mobile telecom market.
 Telenor will inject a total of $1.2 billion (Rs 61.2 billion) into Unitech Wireless by the end of the year, in three tranches, giving it a f 67.25 per cent stake in the Indian firm (suject to regulatory approval).
Earlier this week, Telenor had said it would take 67.25 per cent of the company instead of the earlier planned 60 per cent because of certain economic developments in India.
'This marks the formal entry of Telenor into the world's fastest growing mobile market and we are now embarking on an operational phase and the preparations for the launch of our services,' said Telenor Group President and CEO, Jon Fredrik Baksaas.
Last year, the total number of mobile connections in India increased by more than 100 million. To grab a share in the growing Indian market, Telenor has said that it will focus on a cost-efficient, swift and a flexible network roll-out to optimise profitability.
Unitech Wireless has recently entered into tower sharing agreements with Wireless-TT Info Service (Tata Teleservices' tower company) and Quippo Telecom Infrastructure, ensuring access to thousands of antenna sites at a reduced cost.
Baksaas added, 'We are looking forward to take a key role in developing a new Indian mobile operator, leveraging on our track record from providing mobile services to people in emerging and fast-growing markets”.
Industry analysts have been skeptical about Telenor's plans to enter the Indian mobile telecom market, which they say is already. X
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