Telenor group has reported a total ARPU (Average Revenue Per User) of Rs 97 for India region, for the quarter ending June 30, 2013, up from Rs 94 sequentially but same as Rs 97 in the same quarter last year.

Uninor ARPU Q2 2012

Highlights

Total Subscriber Base: Telenor has a total subscriber base of 24.5 million across six telecom circles in the country, including Andhra Pradesh, Bihar, Gujarat, Maharashtra, UP East and UP West. In comparison, Telenor had a subscriber base of 23.6 million in the previous quarter and a comparable six circle subscription base of 23.5 million in the same quarter last year (Q2 2012). Note that Telenor had closed down its operations in seven of thirteen operational telecom circles in 2012 and in Q1 2013.

Net Additions: Telenor saw 0.9 million additions during the quarter.

Average Minutes Per User was at 426 minutes for the quarter, up from 401 minutes in the previous quarter and 334 minutes in Q2 2012.

Uninor AMPU Q2 2012

– Churn rate: The monthly churn rate was at 6%, up from 5% in the previous quarter.

Revenue: Telenor noted that the revenue in local currencies in six operational circles increased by 7% year-on-year, despite negative development in Maharashtra circle, following the closure of the neighboring Mumbai circle in February 2013.

Waiting For Govt Approval & Unified Licenses Situation

Telenor noted that even though it has fulfilled its part of the requisite conditions for continued operations in India, the Indian government has still not provided the necessary approvals to carry out the business transfer from Uninor to Telewings nor issued unified licenses to make use of the spectrum secured by Telewings in the November 2012 auction.

As a result, Telenor is currently operating its business under the old spectrum through Uninor as an interim measure, until the business is transferred to Telewings.

In October 2012, Telenor had partnered Lakshdeep Investments & Finance to create a new joint venture Telewings Communications, after a bitter battle with previous Indian partner, Unitech (A Telenor vs Unitech timeline here). Telenor maintained operational control of the entity and was expected to own 74% of the joint venture, following all requisite government approvals. It had also mentioned that all assets of Unitech Wireless (Uninor) will be transferred to Telewings following necessary approvals, for seamless continuity of operations.

Telewings had then secured 24 blocks of spectrum in 6 circles for a total of Rs 4,018.28 crore in the 2G spectrum auction that concluded in November 2012.

Last month, Telenor had received Foreign Investment Promotion Board (FIPB) approval to increase its stake to 74% from the existing 49% in its Indian joint venture Telewings. The company had received an approval to invest up to Rs 1,000 crore in the joint venture. Interestingly, its also worth noting that Indian government had approved 100% Foreign Direct Investment (FDI) in telecom last week, although its not clear whether Telenor has any plans to buy out its Indian partner in the future.

Financials

Telenor group has reported total India revenues of NOK 728 million (around Rs 734.9 crore) for the quarter ending June 30, 2013 (Q2-2013), registering a 29.6% decline from NOK 1.03 billion (Rs 1,041.3 crore) revenues in the same quarter last year but a minor 2.82% increase from NOK 708 million (Rs 715.8 crore) in the previous quarter.

Uninor India Q2 2012

It posted an operating loss of NOK 107 million (Rs 108 crore) for the quarter, a significant improvement from NOK 619 million (Rs 625.8 crore) loss in the same quarter last year and NOK 194 million (Rs 195.8 crore) loss sequentially. The EBITDA loss was at NOK 153 million (Rs 154.4 crore) for the quarter, an improvement from NOK 625 million (Rs 631.9 crore) loss in the same quarter last year and NOK 185 million (Rs 186.8 crore) loss sequentially.

Bank Guarantee To DoT: As of June 30, 2013, Telenor ASA has issued bank guarantees worth NOK 2.6 billion (Rs 2,624.5 crore), of which NOK 1.2 billion (Rs 1,213.1 crore) has been issued to India’s Department of Telecom (DoT) and NOK 1.4 billion (Rs 1,413.2 crore) relates to interest-bearing debt.

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