Sistema Shyam TeleServices Ltd. (SSTL) that provides telecom services under brand MTS has said that it bagged spectrum in the 800 MHz band in eight circles. SSTL was the lone bidder for CDMA spectrum the auction for which lasted few hours on Monday. The government had put on block CDMA spectrum worth Rs 6,400 crore.

The Circles won by MTS India include Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) & West Bengal.

The company would be required to pay INR 3,639 crores for the license period. The terms include payment of 25% of the final bid amount within 10 days, followed by a payment moratorium until March 2016, after which the balance amount will be paid in 10 equal annual installments. The Government of India has confirmed that SSTL will be able to set off the previous license cost of INR 1,626 crores against the new spectrum cost.

SSTL said that that the Company’s operational footprint to also include Rajasthan circle which was not affected by the Honorable Supreme Court of India’s order dated 2nd February ‘2012.

While bidding for spectrum in the auctions, MTS India considered a range of variables including spectrum pricing, number of carrier slots available, levels of competition, future data potential in the circles etc.

SSTL in February shut operations in 10 areas to shore up finances ahead of the March spectrum auction.

“Based on such criteria, the Company also decided not to bid for Mumbai, Maharashtra and UP East circles and would be immediately initiating the process to inform its customers in 3 circles to port out to other telecom operators of their choice”, it had said in a statement last month.
 
 “Given the range of variables we have considered and the spectrum cost for 800 Mhz, it was a big challenge to arrive at a core list of 8 circles and to bid accordingly. With Rajasthan circle also a part of MTS India’s footprint, we would be able to service 40% of country’s population, address over 60% of data business potential, safeguard 75% of our current revenues and significantly optimize our losses. Our go forward plan includes building an even stronger MTS brand in the country by focusing on our data centric-voice enabled strategy”, said Vsevolod Rozanov President & CEO, Sistema Shyam TeleServices Ltd.,
 
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.
 
SSTL in India has over 14 million wireless subscribers out of which 15% come from the impacted circles.  The company employs over 2800 employees and has made investments of over $ 3.2 billion. The employees in the circles where the company has not participated would also be affected.

 “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 had said in a statement in February.
 
 As of 28th Feb 2013, SSTL has on rolls employee count of about 2,850 out of which 15% are employed in the 3 circles where the Company decided not to bid and would therefore be affected.

For Latest Updates Visit : http://www.facebook.com/pages/TelecomTiger/429104257149437