Uninor to bid for 2G spectrum; exit option not ruled out

New operator Uninor, a joint venture between Telenor of Norway and Unitech, today said the company will participate in 2G spectrum auction but did not rule out exit option from the Indian market.

"In principle we will go for auction but I am not saying that whether we will win everything ... So, the option of exit cannot be ruled out," Uninor Managing Director and Telenor's Asia head Sigve Brekke told reporters.

 He also said that company would finalise its strategy after looking at the base price and the reserve price for the spectrum. The licence of Uninor, along with other new operators, has been cancelled after the Supreme Court's judgement last week on the basis that all 122 2G licences were issued illegaly in January 2008 by former telecom minister A Raja.

The apex court has asked the government to seek fresh recommendations from regulator Trai to distribute licences and spectrum through auction and complete the process within four months. Asked whether the company would bid for all the circles, he said "at this time it is difficult to say whether we will bid or not or for how many circles ... we have to see the base price first."

He, however, asserted that the auction should be among the new operators like it was in 2008 and incumbant players, who already have spectrum, should not be allowed to participate. At one point of time he also indicated that the company was here for long time and not closing down operations.

Watch the accompanying video for the full press conference on CNBC-TV18.