The loss-making cellular operator, Uninor, is banking on price game in the voice and basic services segment to break-even on operations, as early as in 2013.

In the absence of premium or value-added offerings – such as 3G or data cards – the company is aiming to place itself as the second most preferred choice to multiple SIM (or numbers as it is loosely termed) users.

Availability of cellular connections at throw-away prices, coupled with rock-bottom mobile telephone tariffs has made India one of the largest users of multiple numbers.

Dual-sim phones

The trend is evident in the explosion of ‘dual-SIM' handset population in the country. Having been introduced approximately two years ago, dual-SIM phones have already cornered nearly 40 per cent of the domestic handset market.

“We hope to break-even on EBIDTA (earning before interest, depreciation, tax and amortisation) margin by 2013,” Mr Rajiv Bawa, Executive Vice-President, Corporate Affairs, Uninor, told Business Line .

The company is planning to raise nearly Rs 9,000 crore long term borrowings as part of the plan to repay the Rs 5,000 crore short-term debts.

13 circles

Uninor currently operates in 13 of the 22 circles in the country including, Uttar Pradesh (East), UP (West), Maharashtra, Mumbai, Gujarat, Orissa, Bihar, Kolkata, Bengal, Andhra Pradesh, Kerala, Tamil Nadu and Karnataka. It has spectrum licence for 21 circles except Delhi. Launch in other circles are likely to be delayed till the company breaks even.

The joint venture between Norwegian telecom operator - Telenor - and real estate major Unitech; has a subscriber base of less than three crore in a growing market-space of 77 crore.

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