Unefon post-paid subs up, but revenues down

2 Mar 2006

Mexican mobile operator Unefon said revenues fell 10% to MXN4 billion (USD382 million) in 2005 on the back of a fall in interconnection rates, according to BNamericas quoting a company statement. The cellco said the cut in interconnection charges, which came into effect in May 2005, prompted an 8% fall in service revenues, which constitute the bulk of Unefon’s sales, to MXN3.7 billion. Unefon will release its complete full year financials later this month.

Unefon ended 2005 with 1.42 million subscribers, up 200,000 on the start of the year, whilst the company’s efforts to concentrate on higher revenue users saw the percentage of customers on contracts rising to 11%, compared to 5% in 2004. Despite this, full year blended ARPU fell 14% to MXN210. Unefon launched services in 21 cities in 2005, 16 of which it operates with its own infrastructure and the rest through shared capacity agreements with Mexico’s other CDMA mobile operator, and its sister company, Iusacell. The company plans to expand coverage to a further 29 cities in 2006.

Mexico, Unefon