Telecom Lead India: Mobile phone operator Telenor is
planning to slash 2,000 jobs in Indian telecom market.
This is part of a cost-cutting drive.
Telenor will reallocate resources to more profitable
regions in India and brought forward by a year and a half the break-even point
for a unit that has never turned a profit.
“By doing this, we believe that we can make (Indian
unit) Uninor self-financing, that means cash-flow break-even, within the end of
2013. In the previous business plan, this target was the first half of
2015,” said Telenor Chief Executive Jon Fredrik Baksaas.
However, Telenor would only take part in a new licensing
process, expected in late August, if it stayed within its self-imposed 155
billion Indian rupee ($2.8 billion) funding cap, Reuters reported.
Telenor has more than 150 million subscribers across
Europe and Asia.
Uninor is among eight carriers set to lose a total 122
zonal permits in September, after a Supreme Court order to revoke all licenses
granted in a scandal-tainted 2008 sale.
In the second quarter, Telenor picked up 2 million
customers in India, a slowdown from earlier as the market saturates, and
reduced its EBITDA loss to 625 million crowns from 965 million a year.
Telenor’s second-quarter operating profit rose 32 percent
to 4.29 billion crowns, prompting the company to lift shareholder returns as
both its European and Asian operations improved.
For the full year, Telenor continues to expect group-wide
revenue excluding India to rise in excess of 4 percent, in line with its
guidance from three months ago, and still sees its earnings before interest,
tax, depreciation and amortization (EBITDA) margin in the 35 to 36 percent
range.
Uninor introduces flat rate STV plan for Mumbai customers
Uninor, despite uncertain market conditions, has
introduced STV 49, a special tariff voucher called ‘Ek Bharat, Ek Rate’ plan for
the GSM customers in Mumbai. The new plan comes with a validity of
one month and offers a flat rate of just 25 paise per minute on all local and
STD calls.
editor@telecomlead.com
