Indian trouble for Telenor / News / The Foreigner

Indian trouble for Telenor. Telenor’s share of the Indian mobile market hasn’t taken off in keeping with expectations. Last Friday, Stein-Erik Vellan, Managing Director of Uninor, resigned. Vellan, previously CEO of Telenor Serbia, participated at Telenor-controlled Uninor’s launch on the Indian market just over six months ago. The project is very ambitious, expensive, and has been highly criticized.   But even though the number of Indian subscribers grew by 16 million, Uninor lost 8.000 customers, reports Dagensit. 

telenor, jon, fredrik, baksaas, stein-erik, vellan, uninor, mobile, fall, market, share, india, loss, sigve, brekke, carnegie, espen, torgersen



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Indian trouble for Telenor

Published on Monday, 12th July, 2010 at 17:03 under the news category, by Ramona Tancau and Michael Sandelson   .

Telenor’s share of the Indian mobile market hasn’t taken off in keeping with expectations. Last Friday, Stein-Erik Vellan, Managing Director of Uninor, resigned.

Jon Fredrik Baksaas, CEO Telenor
Jon Fredrik Baksaas, CEO Telenor
Photo: Telenor


Vellan, previously CEO of Telenor Serbia, participated at Telenor-controlled Uninor’s launch on the Indian market just over six months ago. The project is very ambitious, expensive, and has been highly criticized.  

But even though the number of Indian subscribers grew by 16 million, Uninor lost 8.000 customers, reports Dagensit. 

Telenor’s management wasn’t satisfied with its Q1 figures, that showed Uninor had a just a 0.8 percent share of the market.

“We’re disappointed,” Jon Fredrik Baksaas, President and CEO of the Telenor Group said, when the company presented its Q1 results in May.

Baksaas had already declared the Indian market was tougher than predicted, but Telenor claims the fall in the number of customers is due to changes in how active subscribers are counted.

However, despite the unsatisfactory results, Baksaas discounts any connection between Vellan’s resignation and market penetration performance.

"Stein-Erik Vellan and his team in Uninor have done a good job in launching the services of Uninor in record time. I would like to thank Stein-Erik for his efforts in building up a vital new player in the competitive mobile market in India,"

Vellan, who is to move to another job in the company, will be replaced by Sigve Brekke. Brekke is current head of Telenor Asia region, and will now occupy both positions. 

Unionor has planned to invest about NOK 18 billion in India over the coming years, targeting an eight percent market share.

According to Telenor, India represents an opportunity market. According to Espen Torgersen, an analyst at Carnegie, Telenor had already been warned that something similar could occur.

“Telenor was always good at getting customers and capturing large shares of new markets. It’s hasn’t achieved anything in India,” he says.




Published on Monday, 12th July, 2010 at 17:03 under the news category, by Ramona Tancau and Michael Sandelson   .

This post has the following tags: telenor, jon, fredrik, baksaas, stein-erik, vellan, uninor, mobile, fall, market, share, india, loss, sigve, brekke, carnegie, espen, torgersen.





  
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