Telenor replaces Uninor chief

Nicole McCormick
12 Jul 2010
00:00

Fledgling Indian operator Uninor has lost its managing director just eight months after launch.

Parent firm Telenor, which owns 67.25% of Uninor, announced the resignation of Stein-Erik Vellan as the firm’s managing director on Friday.

Telenor’s Asian chief Sigve Brekke will take on the role of Uninor managing director, the company said.

Vellan will move on to an undisclosed position within the Telenor Group.

Uninor launched its service late last year and expanded it to five new circles in June, increasing its coverage to 13 regions with a population of 900 million.

It has 5 million mobile customers, but posted a net loss of 8,722 customers in May. Net adds dipped under the 1 million mark in both March and April.

Telenor reported a $137.3 million ebitda loss on its Uninor investment in Q1, on sales of just $8.8 million.

It says it expects Uninor to generate positive cash flow and account for 8% of the Indian market by revenue in five years.

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