Shares in India’s second-largest operator Reliance Communications (RCOM) rose almost 5 percent in early trading in Mumbai today after the operator reported better-than-expected quarterly results over the weekend.

For the quarter ended 31 March (the company's fiscal Q4), RCOM posted net income of INR3.32 billion (US$60 million), up from INR1.68 billion the previous quarter and ahead of the average INR1.69 billion forecast by analysts in a Bloomberg poll. Revenue rose 5 percent to INR53.1 billion. Mobile accounted for 62 percent of group revenue (INR45 billion).

Mobile subscribers reached 153 million by the end of the quarter, up from 150 million at the end of the previous quarter, giving it a market share of 16.7 percent.

According to Bloomberg, the improved results were linked to RCOM raising call rates for the first time in more than two years in 2011, joining rivals such as Bharti Airtel and Vodafone in attempting to relieve pricing pressure in one of the world’s cheapest mobile markets.

The company is also seeking to sell its tower unit (Reliance Infratel), and a stake in its submarine-cable unit (FLAG Telecom ) to reduce its debt load.