Telenor starts services, calls at 29p/minute

Norway-based firm Telenor today became the latest telecom operator offering mobile services in the world’s fastest growing wireless market.

The company, which has a joint venture with India’s Unitech Group, would initially launch its services under the brand name Uninor in seven circles — Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, UP (East), UP (West) and Bihar.

The next phase of launch would be done early next year. Telenor Group CEO and President Jon Fredrik Baksaas said the company would not offer a per-second billing plan as it was not necessarily a feature customers were looking for.

“Our plans would give more value for money to the users,” he said, referring to the 29 paise per minute plan being offered.

The per-second billing plan was first offered by Tata DOCOMO, which was soon followed by the rest of the telecom operators. However, analysts expect this ultra low-cost plan to hit the bottomlines of service providers.

“We are targeting a market share of 8 per cent by 2018 and an Ebidta break-even in three years, besides an operating cash-flow break-even in five years,” Unitech Wireless Managing Director Stein-Erik Vellan said.

The company also said it expected its average revenue per user (ARPU) to be lower than the industry level in the near term before rising to the sector level by next year-end.

Vellan said the company was still examining whether it should bid for the upcoming 3G auction. He made it clear that the company would definitely not bid for an all India 3G spectrum licence.