Norwegian mobile operator Telenor on Wednesday said it had cut down its India investment plans for the next five years by Rs. 3,500 crore from the earlier estimate of Rs. 15,500 crore. Telenor will soon be launching its India operations in partnership with Unitech Wireless under the brand name Uninor.

The targeted roll-out, combined with better terms from equipment vendors, will reduce the capital expenditure requirements.

Accumulated capital expenditure in the first five years will be reduced by Rs. 3,000-3,500 crore. The earlier communicated peak funding of Rs. 15,500 crore is now expected to be somewhat lower, Telenor said in a statement.

“The market share ambitions and other financial targets, including EBITDA (earnings before interest, tax and depreciation) break-even by around three years after the launch and operating cash flow break-even by five years post-launch, are still valid,” it said.

It would go in for a focussed roll-out in majority of the 22 circles, while meeting licence obligations in all the circles which would also save operational costs, it added.

Telenor holds 67.25 per cent in Unitech Wireless which it picked up for Rs. 6,120 crore earlier. It already has agreements with about 1,000 distributors and three-lakh points of sale in place, besides 12,000 running base stations.

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