Sistema Shyam Teleservices Ltd (SSTL) which nationally operates its telecom services under the MTS brand on Monday said that its consolidated revenues in quarter three has decreased by 3.3% Q-o-Q to Rs 4,040 million (Rs 404 crores).
 
SSTL said that revenue growth during the quarter was impacted due to the continued effect of TRAI changes in tariff structure leading to drop in Minutes of Usage (MoU) and Average Revenue Per User (ARPU), for all operators including MTS.
 
“The revenue growth for MTS was also impacted due to the slowdown in subscriber acquisition activity. The subscriber growth slowed down due to strict control over sales and marketing expenditures,  aggressive tariffs and predatory practices launched by competition, all leading to churn of existing subscribers” it said in a statement.
 
SSTL’s net income during the quarter improved by 58% Q-o-Q.
 
Non-voice revenues from both data and mobile VAS for the quarter remained flat at  INR 1,482 million (INR 148.2crores), which now contributes 36.7% of total revenue and the contribution of Non Voice Revenues to the Total Revenues is amongst the highest in the industry.
 
Blended mobile ARPU for the quarter declined by 6% to Rs. 78.
SSTL’s current focus is on– Retaining subscribers, controlling expenses to optimize cash outflow.
 
The Company continues to develop its data business- HSD services now cover over 450 towns across India.
 
SSTL’s data card subscriber base for the quarter up by 5.9% to 1.83 million subscribers.
 
SSTL has successfully been able to raise Rs 480 crores from banks during the quarter.
 
The company said that its total wireless (Voice & Data) subscriber base for the quarter grew by 0.2% to 16.60 million.
 
Vsevolod Rozanov, President and CEO of SSTL, has said “The telecom industry continues to suffer due to regulatory actions. In a seasonally weak quarter the revenues of SSTL were impacted. The revenues declined for the first time since the start of the Company’s operations. The subscriber growth during the quarter also suffered on account of uncertainties in the operating environment and due to the predatory practices adopted by competition. Going forward, the plan includes to continue our focus on driving operational efficiencies. In addition, the Company’s immediate priority is to look at the outcome of its curative petition filed in the Honorable Supreme Courts.”