Uninor /Telenor Improving Market Position

Uninor India Improving Operations
Telenor India / Uninor reported robust revenue of INR 10.2bn, up 9.6% QoQ. This was led by healthy subscriber-led traffic growth of 4.5% and a 5.1% RPM increase. Telenor hiked its voice RPM by 5.1% to INR 0.241/min, but it was still one-third the discount to Airtel and Idea Cellular.

Traffic growth of 4.5% was led by strong 2mn subscriber addition during the quarter of about 6.6% subscriber growth. MOU fell by 3% to 449 mins after a sustained rise over the past five quarters. Telenor’s MOU was above Idea’s and Airtel’s of 401 and 433, respectively, due to its low price offerings, which was largely due to the 2nd SIM phenomena. ARPU grew by 1.9% to INR 108 despite the (more…)

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…)