Uninor Gaining Traction – Too Early to Decide if it Can Sustain

Uninor – the JV between Unitech and Telnor reported an operating loss increase of 19% sequentially to USD220m. Despite rising operating loss (cumulative operating loss at cUSD570m), the company maintained its capex guidance.

Revenue for the quarter increased sequentially by 84% to USD16m, but not enough for the company to gain some scale (revenue market share less than 0.4%). Rising operating losses for Telenor suggests a tough operating environment, but marginal improvements in wireless KPIs do provide some hope.

Subscribers – Active subscribers of Uninor improved from 48% to 63% and this, combined, with usage improvement, suggests some better traction (MOU up 40% q-o-q). Uninor emphasized its dynamic pricing plan [Badalta Discount] and suggested that c60% of existing subscribers are part of this pricing plan. We note that Uninor appears to have an edge over the incumbents and other new players in terms of the technical capability to offer location-based pricing discounts. Our channel checks suggest that incumbents are not equipped to compete with Uninor in terms of matching this capability.

Network Expansion is Slower – The company rolled out an additional 3,500 cell sites during the quarter (total cell sites at 21,500) as it expanded coverage to five new circles. However, the rollout was slower than in the previous quarter, when the company had deployed c4,700 additional cell sites. The slower rate, in our view, is due to a mix of a cautious approach by management and delays on account of additional clearances mandated by the Indian regulator for telecom equipment.

Author: Webmaster

4 thoughts on “Uninor Gaining Traction – Too Early to Decide if it Can Sustain

  1. The ARPU, even on active subs base, is low at Rs86, suggesting low usage esp give mobile revenues would have a higher contribution from activation charges in the initial launch stage.

  2. Hi im Uninor new customer but aftr being cheated by Uninor i dnt want to continue the cheater company uninor service.
    Every time they deduct money from my account that you download some game all that.i think like me many custmers are thier who also been cheated like me.when you are not using net or you are not entertaing any other apart from only ph calls.how can they simply keep on deducting and there is no information through msg also that they deducted for so and so service and when we try to make person call we found there is no balance, its really a disguisting.and calling and complaing to customer care service is really waste coz they wont write complain they wont solve your problem, even on request for speaking to sr.executive or supervisor or manager they wont connect by giving exuse call after 4hour they are busy.until you are behind them and keep on requesting they wont connect and make you hold for so long that your balance vl may get over.
    So if any one planning to take Uninor service i will sugest dont go for uninor may be their offer is cheap but indirectly it will cost you more by deducting from your accout and you will feel helpless for losing your hardwork money coz it keep on deducting without any information and when you call useless custmer service they will say you downlaod this and that.such a big lier and cheater company.

  3. Worst Quality
    Cannot be appreciated at all
    Sucks ur money without informing you
    Net is nowhere available
    Network does not work at all in my house
    sends unnecessary SMS and rings , and catch you in unfamiliar net debitting ur valuable money , like,Music Unlimited VAS, etc about which u might not be even aware .
    They will make u a Chodu a lot
    I have filled money for Internet on ph but that is not yet started even after consulting their work stations
    They say that ,v don know that why is it not working even in my latest 3 G ph
    Bloody , if this continues , the days are not ahead that it will be drowned a day
    Management is very very poor
    No one , where you get a sim card , knows that how to get Net activated
    THAT ONLY DEFINES IT AS ONLY QUANTITY AND NO QUALITY AT ALL.

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