Telecom sector to see consolidation in near future: Uninor

The Indian telecom sector will witness consolidation in the near future, according to Uninor India CEO Morten Karlsen Sorby.

Speaking to reporters here on Thursday, he said: “While it (consolidation) has been speculated since 2008-09, nothing has really happened on larger consolidations in the country.”

Sorby said that although the Indian market is huge, there is a shared view among the players as well as the regulator, Telecome Regulatory Authority of India, that the sector needs a certain scale and that the economics is still weak.

Uninor India, a subsidiary of Norway's Telenor, is adding roughly 800,000 new customers every month, he said, adding the consolidated user base now stands at 42 million across its six operating circles.

To a question on the uncertainty after the 2G spectrum cancellations, Sorby said: “We are through that period and are now in a positive territory. Uninor is looking forward instead of looking back at the history.” He further stated it would test the 4G services by the end of 2014.

Uninor said on Thursday it witnessed a 40 per cent jump in subscriber base in the January-June 2014 period and the company has spent a large part of its Rs 600-crore capital expenditure earmarked for this calendar year.

Satish Kannan, circle business head at Uninor AP, said that while its pan-India average revenue per user stood at Rs 108, internet consumption will form the backbone to up the revenues in the future.

As part of its ‘Customer First Day’ celebration across all circles, Uninor also said it has enabled wi-fi service in 400 stores and opened 100 new retail outlets.