Telenor has confirmed reports it is seeking compensation from India’s government over the cancellation of 2G licenses, but denies setting a $14 billion price tag on the action.
A spokesman told TelecomAsia the company has informed the government of plans to invoke provisions in an economic treaty between India and Singapore, where Telenor’s Asian operations are headquartered.
“We can confirm that we have informed the government of India of our intent to invoke the provisions of the CECA…While we haven’t stated any amount, we do intend to seek compensation for all investment, guarantees and damages,” the spokesman said.
Local press reported the carrier is seeking $14 billion in damages and threatened to take the government to international arbitration.
However, the spokesman says Telenor is still seeking to resolve the matter without resorting to legal action, to enable it to remain active in the country. “We are hopeful that it remains the government’s intent to protect and encourage bonafide foreign investment,” he said.