Tweet
December 15, 2010, 2:21 AM EST
By Ketaki Gokhale
(Updates with background on auditor’s report in fourth paragraph.)
Dec. 15 (Bloomberg) -- Unitech Ltd., India’s second-biggest developer by assets, fell in Mumbai trading after the company’s mobile-phone venture received a government order to prove it’s entitled to keep offering wireless services.
The company, whose telecom venture is majority owned by Norway’s Telenor ASA, declined as much as 3.2 percent and traded at 62.10 rupees, down 2 percent, as of 12:30 p.m. The shares have fallen 25 percent this year, compared with the benchmark Sensex Index’s 13 percent advance.
Unitech Wireless, and Emirates Telecommunications Corp.’s Indian unit, were among companies that got notices yesterday asking them to prove the validity of their mobile-phone licenses within 60 days. The government is due to issue similar letters to the owners of as many as 85 licenses as part of a probe into the sale of second-generation wireless airwaves at below-market rates.
The telecommunications ministry sent the so-called “show- cause notices,” an initiation of legal action against the carriers, after an audit that said they bought permits in 2008 after suppressing facts and submitting fictitious documents.
Etisalat DB Telecom Pvt. and Unitech Wireless will present their cases to the government within the stipulated time, the two companies said in e-mails yesterday.
Unitech Wireless welcomes the “intent to bring in transparency, justice and equity through this structured approach,” it said in an e-mailed statement.
Telenor, Scandinavia’s biggest phone company, owns a 67.25 percent stake in Unitech Wireless, according to a Feb. 10 statement from Unitech to the Bombay Stock Exchange. Unitech holds the remaining stake in the wireless venture.
--Editors: Anand Krishnamoorthy, Young-Sam Cho.
To contact the reporter on this story: Ketaki Gokhale in Mumbai at kgokhale@bloomberg.net.
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net
Powered by WizardRSS | Work At Home Jobs
(Updates with background on auditor’s report in fourth paragraph.)
Dec. 15 (Bloomberg) -- Unitech Ltd., India’s second-biggest developer by assets, fell in Mumbai trading after the company’s mobile-phone venture received a government order to prove it’s entitled to keep offering wireless services.
The company, whose telecom venture is majority owned by Norway’s Telenor ASA, declined as much as 3.2 percent and traded at 62.10 rupees, down 2 percent, as of 12:30 p.m. The shares have fallen 25 percent this year, compared with the benchmark Sensex Index’s 13 percent advance.
Unitech Wireless, and Emirates Telecommunications Corp.’s Indian unit, were among companies that got notices yesterday asking them to prove the validity of their mobile-phone licenses within 60 days. The government is due to issue similar letters to the owners of as many as 85 licenses as part of a probe into the sale of second-generation wireless airwaves at below-market rates.
The telecommunications ministry sent the so-called “show- cause notices,” an initiation of legal action against the carriers, after an audit that said they bought permits in 2008 after suppressing facts and submitting fictitious documents.
Etisalat DB Telecom Pvt. and Unitech Wireless will present their cases to the government within the stipulated time, the two companies said in e-mails yesterday.
Unitech Wireless welcomes the “intent to bring in transparency, justice and equity through this structured approach,” it said in an e-mailed statement.
Telenor, Scandinavia’s biggest phone company, owns a 67.25 percent stake in Unitech Wireless, according to a Feb. 10 statement from Unitech to the Bombay Stock Exchange. Unitech holds the remaining stake in the wireless venture.
--Editors: Anand Krishnamoorthy, Young-Sam Cho.
To contact the reporter on this story: Ketaki Gokhale in Mumbai at kgokhale@bloomberg.net.
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net
Powered by WizardRSS | Work At Home Jobs