Uninor Wireless plans corrective measures to improve India business

Uninor India

Uninor Wireless plans corrective measures to improve India business

Telenor said its Indian operations will see a loss of `4,500-5,500 crore this fiscal and would face a further hit of `6,500-7,500 crore between 2011 and 2013 before breaking even. This is in line with its projections in 2008, when it had told investors it would take a ` 15,000-crore hit in India over five years ending 2013, before making cash profits

Many of the new entrants are battling for survival as the tariff wars in India’s ultra-competitive mobile market have significantly lowered the average revenue per user, making their businesses unviable. These companies, which include Videocon, Uninor, Sistema-Shaym, Loop, S Tel, Etisalat and Allianz Infratech, have all struggled with their rollout plans. Some of them have also approached the government seeking exit options.

While Uninor has been the best performer among the new entrants that launched services last year, it has failed to make a dent in the world’s fastest-growing telecom market as it commands only about 1% market share in India’s 650-million strong mobile base.