Uninor achieves break even in UP West and Bihar
By insightVAS - Fri Sep 20, 12:52 pm
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In UP West and Bihar including Jharkhand, Uninor has achieved break even. The company is expecting positive cash flow by end of this year in all the circles. The operator has 5.2 million subscribers in UP West and 4.3 million subscribers in Bihar circle.
“We have already announced break even in three out of the six service areas where we are in. Today we have reached break even in UP West and Bihar circle including Jharkhand,” Uninor CEO Yogesh Malik said.
Earlier, it had broken even in UP East, Gujarat and Andhra Pradesh. The company is only left with Maharashtra circle which it expects to break even before end of this calendar year.
“We have preponed our target by one year and we stick to that for reaching cash flow positive in all circles by end of 2013″ Malik said.
Telenor, the Norwegian parent company of Uninor, recently said that it expects the Indian unit to reduce the discounts it offers to customers over time. Uninor has been offering low tarffis to ramp up subscriber base. Malik said, however, that the company will remain most affordable telecom services company in the country and will continue to offer services at 30-40 percent lower rates than its competitors in the market.
On expansion of business in other telecom service areas, Malik said the company has not taken final decision on participation in auction. Telenor had shown interest in continuing operation in Mumbai circle but demanded 50 percent cut in spectrum reserve price fixed for it. Telecom regulator TRAI has recommended about 56 percent cut in spectrum base price.
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