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Telenor Pakistan faced an operating loss of $14.3 million in the first quarter of 2009, following a loss of $ US 49 million in 2008.

Average revenue per user in Pakistan stood at just Rs. 252 ($ US 3) per subscriber per month in the first quarter, the lowest in all 13 countries in which Telenor operates, but the number of subscribers grew by nearly 20 percent year-on-year.

A fresh air in the quarter 2nd of 2009 where Telenor Pakistan has posted a growth in revenues by 8% and netting 908k subscribers compared to 597k in the previous quarter. The report does not talk about the net profit, a percentage figure on the basis of net addition in connection has been taken into account.

Just two days back a court in Moscow has allowed the sale of shares owned by Telenor in VimpelCom, a number two company by size in Russia, in which Telenor has 29.9 % of shares. The order from the court will result in a total loss of all the assets Telenor posses in Russia.

Earlier this year, the Siberian court ordered Telenor to pay VimpelCom damages after Farimex Products Inc., a small stakeholder in VimpelCom, sued Telenor for blocking the mobile phone network’s expansion into Ukraine few years ago. Telenor had termed the suit a fake and flawed and refused to pay the damages.

Court had authorized the auction of Telenor’s 29.9 percent share last month in a bid to recover $ 1.7 billion as court-awarded damages. If courts orders are implemented Telenor will lose every thing there before it can go for an appeal.
Another company, Alfa, which has a 44 percent stake in VimpelCom, is pursuing a similar suit against Telenor in Geneva.

Just yesterday, decision has been taken to give clearance to Telenor for its Indian operations (Unitech Wireless) where it can raise its shares to 74% on the terms that no employee from the Pakistani operations of Telenor will be inducted, reports economic times.
Home ministry officials were categorical that the security concerns of the agencies needed to be addressed while granting the go-ahead.

It also means that anyone from staff working in the countries other than the Pakistan but has served at some point in Pakistan will face the BAN. Nevertheless, a manager working in Indian operations can always go to Pakistan on the condition that he/she will never return back.
Keeping human assets of the Indian and Pakistani arms of Telenor separate is expected to take care of risks such as spying and subversion.

Telenor also posses some 62 % share in Bangladeshi operations, Grameenphone, but IB and RAW were highly suspicious about the security implications of Telenor’s presence in Pakistan through a 100% owned subsidiary of the Norwegian parent company, as per reports on ET.

The reports that Telenor Pakistan selling its share to China Mobile is not out of comprehension. The group apparently is in rush to start Indian operations where the company foresee a huge potential as only 27% of Indian market has availed the mobile phone services yet.

As 3G being delayed in Pakistan by the authority and a strong resistance from few of the operators and other losses in Russia and Bangladesh, Telenor find India as its next home. In order to further raise its share to 74% in India, Telenor is in talks with a consortium of banks for a further loan of US $ 2 bn.

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