NSR-backed Augere Wireless to exit India

Regulatory uncertainty has caused Augere to close down its India operations in Madhya Pradesh and Chhattisgarh and ask its local employees to hand in their resignation, two company executives told The Economic Times.

The lack of clarity on regulations surrounding India's telecoms sector have resulted in the company "being unable to raise funds from both national and international investors," according to CEO Lars Henrick Stork.

"The cancellation of licenses by the Supreme Court, Trai's rules for re-auction and the exorbitantly high reserve price, as well as lack of clarity on the new telecoms policy, which was supposed to be unveiled by mid-last year and has not happened yet... all these factors have resulted in our investors stopping funding for our activities here," he added.

Aside from New Silk Route, Augere's backers include ex-CEO of Orange Sanjiv Ahuja, Harbinger Capital, France Telecom, and Vedanta Opportunity Fund.

Stock is aware that market participants will assume the company wants to sell, but said that the management will take 4-6 weeks to decide what to do.

Augere also provides services under the Qubee brand in Asia and Africa.

New Silk Route, meanwhile, has been busy making a number of other investments in India of late. Last month it boosted VRL Logistics, a Karnataka-based logistics and transport company, with INR1.75 billion ($33 million), as well as picking up a minority stake in Vasudev Adiga's Fast Food, which runs a chain of south Indian restaurants.

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• Topics
• South Asia
• Technology
• NSR New Silk Route Partners
• India
• Technology