Uninor registers profit in UP West, Bihar

 PTI   New Delhi     Last Updated: September 19, 2013  | 18:59 IST
Uninor registers profit in UP West, Bihar
PHOTO: Reuters

Telecom operator Uninor has said its operations in UP West and Bihar circles have now started registering profits, and positive cash flow is expected by end of this year in all the circles.

The company said that it 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 per cent 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 per cent cut in spectrum reserve price fixed for it.

Telecom regulator Trai has recommended about 56 per cent cut in spectrum base price.

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