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Uninor Breaks Even In Five Of Its Six Telecom Circles

Telecom operator Uninor has announced that it has achieved EBITDA (earnings before interest, tax, depreciation and amortization) break even in two new circles - Uttar Pradesh (West) and Bihar. With this, Uninor has now broken even in five of the six operational circles, and seems to be on track with its plans to break even in all six operational circles by the end of 2013. Uninor had broke even first in Uttar Pradesh (East) in November 2012, followed by Gujarat in January 2013 and Andhra Pradesh in July 2013. The only circle where Uninor is yet to break even is Maharashtra (which includes Goa), where the company apparently faced negative development in terms of revenue in the previous quarter, due to the closure of the neighboring Mumbai circle in February 2013. Interestingly, Uninor CEO Yogesh Malik also points out that Uninor has lower average revenue per user (ARPU) and higher energy costs in these circles, while other circles like Gujarat and Andhra Pradesh have higher ARPU and lower energy costs. He claimed that Uninor currently has more than 2,890 sites in UP (West) and 2,442 sites in Bihar while the company has a retail footprint of 56,285 points of sale in UP (West) and 50,000 points of sale in Bihar, as indicated by a Business Standard report. Going forward, the company plans to expand its network and retail presence with specific focus on the rural regions. Telenor's Roller Coaster 2012 and 2013 Norway's Telenor which currently operates in India as Uninor, seems to be slowly recovering after a roller coaster year or two in terms of licenses…

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