Uninor breaks even in Gujarat; to set up 500 new network sites in state

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GSM operators Uninor, which today said that it has achieved break-even in Gujarat telecom zone, plans to set up 500 new network sites by June in Gujarat telecom circle.

The company also has plans to go for another round of expansion during the second half of the current fiscal year.

In November last year, Uninor had said that it aimed to turn operating cash positive in all six circles by end of 2013. Last November, Uninor had said that it had turned operating cash positive in Uttar Pradesh (East) telecom circle.

Uninor, which is backed by Norway-based telecom giant Telenor, had to trim down its operations n India after its operating permits in 13 telecom zones were quashed by the Supreme Court order. In November last year, the company had secured fresh licences for six telecom circles — Andhra Pradesh, Uttar Pradesh East, Uttar Pradesh West, Bihar, Gujarat and Maharashtra, in the recently closed auction of 1800 MHz spectrum.

Uninor, which follows a low-cost operating model with a basic services focus for mass market, claimed that it would be the fastest roll out by any telecom operator in less than three years.

“Achieving profitability now further strengthens Uninor’s ability to continue offering the most affordable tariffs to the mass market and invest further in growing its operations in Gujarat,” said Uninor CEO Yogesh Malik.

According to a statement by the company, Uninor offers calls at 45% lower tariffs compared to other operators.
Telenor had entered Indian market in 2009 through a joint venture (JV) with real estate giant Unitech Group but now has bought back its stake in the JV. The Norway-based telecom service provider, which would operate in India under the name of Telewings Communication Servives has recently sold a 26% stake to Mumbai-based Lakshdeep Investments & Finance.