Uninor?the Indian arm of Norway?s Telenor group?is entering the Maharashtra and Goa circle and will begin to offer services from the second quarter of this year. The company plans to raise debt to the tune of Rs 9,400 crore, Olav Sande, executive vice-president, Western Hub, Uninor said. In India, the company is targeting an 8% market share by 2018 and hopes to be cash flow positive in the next five years.
The company has its presence in eight circles and expects to launch services in 22 more circles by the year-end. That would require funds to the tune of Rs 15,500 crore. The parent company Telenor has already infused equity to the tune of Rs. 6,136 crore and the rest will be raised as debt, Sande said.
Since its launch in December 2009, the company has acquired a 3.55 million-subscriber base by February-end 2010.Telenor owns 67.25 % in Uninor and the remaining equity belongs to real estate major Unitech. Uninor is the brand name for Unitech Wireless?the JV between Telenor and Unitech.
Uninor, which has been a new entrant in the Indian market, did not bid for the 3G auctions. ?Our business model is not to go for 3G. 3G and 4G is more about data and broadband. 3G may be good for urban cities but it will take another 3-5 years before mobile broadband penetrates the market. Even in countries like Norway, 3G did not succeed,? he pointed out.