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Policy & Regulation
Sistema submits application for bid in 800 Mhz spectrum auctions
TT Correspondent |  |  25 Feb 2013

Sistema Shyam TeleServices Ltd. (SSTL) that operates under brand MTS on Monday said that it has submitted its application to participate in the 800 Mhz spectrum auctions in March 2013.

“The Company today submitted its application to participate in the 800 Mhz spectrum auctions in March 2013. Post auctions with the operational footprint clearly defined, the plan is to focus on SSTL’s data centric-voice enabled strategy in select circles and build an even stronger MTS brand in India”, the company said in a statement.

SSTL had lost 21 2G spectrum licences in February 2012, when the Supreme Court canceled all the 122 licences allotted during the tenure of the former telecom minister A Raja.
 
MTS in India has over 14 million wireless subscribers out of which 15% come from the impacted circles.  The company employs over 3000 employees and has made investments of over $ 3.2 billion.

Last week SSTL said that it will shutter operations in 10 areas to shore up finances ahead of the March radio spectrum auction.

“The uncertainties resulting from such cancellation has compelled the Company to conserve it’s resources and initiate the process to inform its customers in 10 circles i.e. Assam, Andhra Pradesh, Bihar, Himachal Pradesh, Haryana, Jammu & Kashmir, Madhya Pradesh, North East, Orissa and Punjab to port out to other telecom operators of their choice”, the company said in a statement.
 
 SSTL said that the decision comes at a time, when the Company is drawing a new blue print for growth, making it future ready. The Government of India has confirmed that SSTL will be able to set off previous licence costs against the new auction prices.
 
“We are in the process of drawing an optimal strategy for the auctions based on several factors including spectrum pricing, levels of competition etc”, it said.
 
It said that the go forward plan includes continuing with the Company’s focus on its data centric-voice enabled strategy in select circles.”
 
SSTL recently has sought a temporary license from the government till the next round of auction takes place.
 
Earlier, the Supreme Court directed that the telcos whose 2G licenses were cancelled following its February 2, 2012 verdict and failed to win spectrum in the auction will have to stop operations forthwith. This also applies to those who did not participate in the auction.
 
It said that a separate order would be issued by the Supreme Court with respect to the company.
 
The apex court had rejected the curative petitions of four telcos- Sistema Shyam Teleservices Ltd (SSTL), Videocon Telecommunications Ltd, Tata Teleservices Ltd (TTSL) and Idea Cellular Ltd and the former telecom minister A Raja in 2G case.

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25 Feb 2013(IST)  
Comment
MTS services are very good, especially its data services. It should continue providing services. may be it can increase tariff.
Posted By :- Mohan
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