Funding problems for stricken cellcos

Wireless operator Uninor, a joint venture between Telenor of Norway and Indian real estate company Unitech, is involved in talks with the Department of Telecommunications (DoT) and the finance ministry to discuss the relaxation of external commercial borrowing (ECB) rules, reports the Business Standard. The cellco’s managing director Sigve Brekke said that the company was having difficulty raising the funds needed to participate in the upcoming 2G spectrum auction, as ‘some banks are seeking more regulatory clarity, while some have reached the maximum exposure limits to the telecom sector.’ Brekke added that Uninor was requesting for the same relaxation in ECB norms seen in the 3G auction, asking authorities to lift the USD750 million cap for funds raised via ECB.