Uninor – Rationalizing Tariffs with Deep Pockets

Uninor / Telenor India Revenues for Q1-2013 degrew 30% affected from the scale of 13 to 6 circles, but organic revenues in the six operating circles grew 7%. Uninor added 1.4mn VLR subs in the 6 circles during the quarter, with a churn of 5% from 12% previously. Uninor does not look to lower the aggression which could cap any expected RPM hikes by incumbents like Airtel and Idea.

ARPU and MOU have also increased 5% and 10% respectively to INR94 and 401/subs/month. It has reduced the RPM by 3% during the quarter, offering current RPM of 24paise/min. With an arbitrage of 11 paisa./mins vs incumbents (idea, Bharti RPM at 35paise/min), it continues to fight for market share with lower price offering. (more…)