Mobile telecom services provider Uninor who lost spectrum licences following the Supreme Court’s February 2 verdict on Wednesday said that given the reluctance of Indian banks to lend money to the telecom sector, they have little option but to go in for options such as external commercial borrowings (ECBs).

Uninor is gearing up to participate in the fresh 2G auction, scheduled to be held in November.
Addressing the media persons Sigve Brekke, managing director of Uninor, and executive vice-president and head (Asia operations), Telenor said that the company is in talks with the Union finance ministry and the Department of Telecom (DoT) to amend the ECB guidelines and enable us to raise funds for the upcoming spectrum auctions.

Brekke said that some banks are seeking more regulatory clarity, while others have reached maximum exposure limits to the telecom sector.

He said that Uninor is requesting the government to lift the $750 million cap that currently exists in raising funds through theECB route. They have done it during the 3G auctions and we are asking not more than that”, he said. 

On Telenor finalising a new Indian partner, Brekke reiterated that the company was not looking at an existing telecom player as its prospective partner and not a real estate company either.