MTS Crosses The 5 lakh Customer Milestone in Bihar & Jharkhand

MTS Crosses The 5 lakh Customer Milestone in Bihar & Jharkhand

Adds over 4.9 lakh voice and over 15,000 data customers in just 16 months - Company on track with its investment plans of USD 180 million, earmarked to develop telecom infrastructure and services in Bihar and Jharkhand. - MTS credited for establishing a network of 25000 retailers across 282 towns & over 25000 in the twin states. - Company has also drawn plans to further expand its rural presence from 25,000 to 30,000 villages by Q1 2011. Additional plans also include expanding retail presence from 25,000 to 40,000 retail outlets by Q2 2011. - Future plan include reaching 1 million voice and 30,000 customer milestone by Q2 2011. - MTS is recognized to be the First Telecom Company in India to launch High Speed Mobile Broadband Services in the state of Jharkhand with speed up to 3.1 Mbps.

New Delhi, Delhi, October 28, 2010 /India PRwire/ -- MTS, the mobile telephony services brand of Sistema Shyam TeleServices Ltd (SSTL), today announced it's achievement of crossing the 5 lakh customer milestone in Bihar & Jharkhand. MTS has added over 4.9 lakh voice and over 15,000 data customers in just 16 months. The company is on track with its investment plans of USD 180 million, earmarked to develop telecom infrastructure and services in Bihar and Jharkhand. Additionally MTS is also credited for establishing a network of 25000 retailers across 282 towns in the 2 states.
Speaking on the achievement, M K Sachdeva, Chief Operating Officer, Bihar and Jharkhand Telecom circle, said, "We at MTS are extremely proud to have crossed the 5 lakh customer milestone in Bihar & Jharkhand. What is significant is that this milestone has been achieved in just 16 months, thanks to the acceptance of our voice and data service. Our future plan includes crossing the 1 million voice and 30,000 data customers by Q2 2011. Additionally we also are planning to expand the retail presence of MTS from 25,000 to 40,000 outlets by Q2 2011."
In addition to expansion of it's retail footprint, MTS has also drawn plans to further expand its rural presence from 25,000 to 30,000 villages by Q1 2011. The company since its launch in July 2009 has maintained a growth rate of 10 percent in Bihar & Jharkhand as compared to just 3 percent growth in the overall CDMA market. Incidentally, MTS is also recognised as the first telecom company to launch its High Speed Mobile broadband services in the state of Jharkhand with speed up to 3.1 Mbps.
Notes to Editor
About Sistema Shyam TeleServices Ltd.

Sistema Shyam TeleServices Ltd. (SSTL) is a joint venture between Sistema {LSE: SSA} of Russia and the Shyam Group of India. Sistema is the majority shareholder in this joint venture with a 74% equity stake; the Shyam Group holds a 23.5% stake and the remaining 2.5% is publicly held. SSTL has been allocated spectrum to provide mobile telephony services in all the 22 circles across the country.
MTS is well recognized in India and worldwide for its commitment to high quality and innovative telecom solutions. MTS has recently been ranked by Millward Brown as 72nd out of the top 100 brands in the world. In a short span of time, MTS has secured over 7 million subscribers in the telecom circles of Kolkata, West Bengal & Sikkim, Rajasthan, Chennai & Tamil Nadu, Kerala, Bihar & Jharkhand, Mumbai, Maharashtra & Goa, Delhi & NCR, Haryana, Karnataka and Andhra Pradesh. MBlaze, the data service of MTS, offered in 84 towns of India, has over 2.5 lakh subscribers so far since its launch in November 2009. MTS has more than 100 million subscribers across the world.

A request to all shareholders..........

The association is being flooded with phone calls and emails pertaining to queries on SSTL Listing, Rights issue details etc .

It is requested that all shareholders note that as and when there will be any development that the Association will know of, the same will be disseminated via this board/ email.Many queries from the Association on the same subjects are pending with the company officials and hence we cannot comment on the same at this time.

Sistema-Shyam gives Rs 100 cr order to Sitronics

NEW DELHI: Telecom operator Sistema Shyam Teleservices has placed a USD 22 million (about Rs 100 crore) order with Russian firm Sitronics for various network related services, including the setting up of the Mobile Number Portability system.

Under the three year contract, Sitronics will provide telecom solutions like signalling transfer point (STP) platform, mobile number portability (MNP) solution, and managed services, said Sistema-Shyam Telecom Ltd (SSTL), which offers cellular services under MTS brand.

MNP, a service which allows users to retain their phone numbers while changing service providers, is likely to be implemented in the country by October 31, 2010.

"This (deal) comes at a time when SSTL is in the process of expanding the footprint of MTS, the mobile telephony brand of the company across India," SSTL said.

FORIS Billing, the solution which assists service operators in protecting their market share and customer relationship management (CRM) system, will be set up in all the new circles where MTS is rolling out services. It is currently sized to scale to 26 million subscribers.

The billing system will help the company to introduce new pricing plans for both retail and corporate customers of MTS.

The company, which sees itself as a strong data services provider, is operates in 12 telecom circles in the country, out of 22 circles for which it has the spectrum (radio waves).

Sitronics will also deliver a STP platform to SSTL. The commissioning of such a platform will enable SSTL to make its MTS telephony services accessible to a larger number of customers from other mobile service providers. This assumes significance as mobile number portability (MNP) is about to be implemented in India.

SSTL, which is planning to list the company here by early 2011, is a JV between Sistema of Russia and India's Shyam Group, which holds 23.5 per cent stake. The rest, 2.5 per cent, is held by the public.

SSTL was given telecom licence for pan-India operations in January 2008 and has CDMA spectrum for all the circles.

Sitronics provides telecom solutions, including software, equipment and systems integration.

I don't see many constraints in listing : CEO

Sistema-Shyam to list on Indian bourses early next year

Press Trust Of India
New Delhi, October 17, 2010

Within days of its shareholders approving Russian government's plan to pick up 20 per cent stake for USD 600 million, Sistema-Shyam, a joint venture between Russia-based Sistema and India’s Shyam Group, said it will list the company by early 2011. Sistema-Shyam Telecom Limited (SSTL) offers mobile

telecom service under brand MTS and uses CDMA technology. "Clearly I don't see many constraints in listing," SSTL President & CEO Vsevolod Rozanov told PTI when asked whether the company will come out with public offering or list itself on Indian stock exchange by early next year.

A Rajasthan High Court order requires the company to initiate the process of listing within 18 months starting from August 8, 2008. "We are actually working on this because we have received an order from High Court of Rajasthan," he said.
Sistema, leading public diversified corporations in the Russia and the CIS region, has a 74 per cent stake in the joint venture with the Shyam Group. Shyam Group holds 23.5 per cent stake and the rest 2.5 per cent being public partake.
SSTL was given telecom licence for pan-India operations in January 2008 and has CDMA spectrum for all the circles. The Russian Federation will put USD 600 million (about Rs 2,800 crore) in the company.
"It has been accorded to offer, issue and allot on a preferential basis in one or more tranches, up to 58.406 crore equity shares of Rs 10 each at a price of Rs 49.31 to the Federal Agency for State Property Management of the Russian Federation," the resolution, passed at the AGM held recently, said.
The shares would be alloted within 12 months from the date of the shareholders' approval in the AGM. Sistema is listed on the London Stock Exchange. SSTL had earlier said they plan to list in 2010, however, as the telecom sector was struggling due to cut throat competition, the telco had shelved the plan.
However, Rozanov feels the worst is over for the telecom sector but still time is not right for SSTL to hit the market. "...What we see now is that the analysts perception and consumer perception on the telecom sector is changing and improving. But we are still not there. There is not so burning need to list business wise," he added.
"We don't want to give out our opportunity at the cheaper price if the funding is already their with us." The company, which sees itself as a strong data- services provider, is presently active in 12 circles in the country

MTS mobile services in Uttar Pradesh by early-Nov

LUCKNOW: Uttar Pradesh will be witnessing launch of "MTS" mobile servies of Sistema Shyam Teleservices (SSTL) group by Diwali next-month, a top company official said.

"The company offers its services in 12 circles and there will be an addition of two more circles- UP (east and west) by next month," President and CEO SSTL Vsevolod Rozanov told reporters here.

SSTL, which offers mobile services in India under the brand name--MTS--is a joint venture between Russia's Sistema and domestic major, the Shyam Group.

"The state of Uttar Pradesh has a lot of potential with a number of educational establishments and untapped broadband sector. We are confident that it will be among top five revenue generators of the Indian operations," he said.

The company besides offering mobile services (CDMA) will be offering wireless broadband services.

"We will be trying to tap the market of broadband wireless, which has a lot of potential," Rozanov added.

The company's CEO said that the data market would be on its focus, as they expect it to be the next big growth sector rather than voice services, which is already overcrowded.

"Future of mobile in India would very soon be based on data services," he said.

SSTL, which has clocked 35 per cent revenue growth quarter on quarter (Q-o-Q) currently sees 10 per cent of its revenue coming from data services, excluding SMS.

Sistema holds a 74 per cent stake in the venture while Shyam holds 23.5 per cent. The balance 2.5 per cent is publicly-held.

He said that the broadband penetration is at present hovering around one per cent and it would surely rise with the economic growth and people start demanding wireless internet services.

The company currently has about seven million customers from 12 circles.

MTS marketing Chief interview

Leonid Musatov, Chief Marketing Officer MTS

MTS is the global telecom brand of Mobile TeleSystems (MTS) OJSC (NYSE: MBT) of Russia. In December 2008, Sistema Shyam TeleServices Ltd, a joint venture between Sistema (LSE-SSA) of Russia and Shyam Group of India, brought the MTS brand into India under a brand license agreement with Mobile TeleSystems (MTS) OJSC.

The MTS brand is one of the most recognized in the world. The latest rankings from Millward Brown Optimor features the MTS brand as the 72nd most powerful brand globally with a value of $9.7 billion. In 2008, MTS became the first and only Russian brand to enter BRANDZ™ Top 100 Most Powerful Brands, a ranking published by the Financial Times and Millward Brown.

Currently the MTS brand operates in India offering voice & data services to over 4 million subscribers in the circles of Rajasthan, Bihar/Jharkhand, Kolkata, West Bengal & Sikkim, Chennai, Tamil Nadu, Kerala, Karnataka, Mumbai, Maharashtra/Goa, Haryana/Delhi & NCR. With the launch of the Andhra Pradesh circle, MTS will be in 12 circles.

MTS launched the high-speed mobile broadband service, MBlaze, in November 2009 and has seen tremendous market acceptance with over 70,000 satisfied customers in a short span of time. In April 2010, MTS launched MTS TV for MBlaze customers. AudienceMatters.com caught up with Leonid Musatov, Chief Marketing Officer, MTS to find out more about his plans and future of MTS in India. The excerpts...

Q1. How has been the journey of MTS so far in India?

So far the journey of MTS has been very exiting and challenging. It has been more than an year in India and these have been the most dynamic years in my life especially my career and it has been one of the best time for our company.

Q2. How many customers does MTS have in the country?

We have around six million voice subscribers and nearly quarter million data subscribers in India. The numbers are continuously increasing and in the coming time we see the MTS market flourishing in India.

Q3. What are the unique features and services you offer to your customers that help you build a relationship with the customer?

A lot of our services as I said are data centric for example in data we offer free browsing on your favourite websites. We offer Fastest uploads at a speed to upto 1.8 Mbps, Micro SD card slot for data storage and Stylish swivel modem for flexible usage. We are also working towards building a relationship with our customers and so we are opening up stores and I think we are on the right path in doing so.

Q4. MTS also has smart phones in its kitty, tell us something about that?

MTS Smart Phones are among the most competitive and fully loaded devices which will set a benchmark in the industry with the 3G capabilities. I am confident that MTS smart phones will take smart phone services in India to a new level ensuring further expansion of our subscribers in India. The MTS Smart Phones will change the way life style mobile devices are being used by the young and upwardly mobile professionals in India. Some people cannot even think of leaving their homes without their mobile phones, they organise, communicate and we are the first company in the market to launch smart phones and data together in the market. However, Instant Messengers, social networking and MTS TV applications in these smart phones will take the subscribers to a new era of mobile broadband experience. I am positive that MTS customers will enjoy these affordable smart phones and appreciate the new bundled voice and data tariff plans.

Q5. How will the growth of 3G enable the growth of smart phones in India?

For 3G applications one would require a smart phone, we have a variety of smart phones in the market and there are more to come up in the lowest price and so I think as the 3G technology grows in India, the demand of smart phones will also go up and the industry would see a boom.

Q6. How difficult it was for MTS to gain momentum in a fiercely fought telecom market in India?

It was not actually that difficult but if you take us as late comers then the cost effectiveness came to us as a great challenge but our focus on data and internet in particular from day one is paying off well because we are a kind of data centric but voice enabled company so the basis is technology and we are focused on the same.

Q7. What is the greatest challenge MTS has faced in the Indian market.

Well! The greatest challenge right now is voice penetration and teledensity. As far as the data is concerned India is a very young market and people are gradually growing and talking a lot. Within one year the market will explore and open up. It hasn’t happened yet but I think I can foresee early signs of that and so we are pushing the market in the right direction

Q8. India is a price sensitive market, so how do you plan to cater the needs of the Indian market?

MTS will be offering all its smart phone consumers, limited and unlimited tariff plans ranging from Rs.192/- to Rs.1099/- keeping in the mind the usage patterns of subscribers from low, medium to heavy. MTS-Buzz offers free usage for both voice and data services worth Rs.1795/- with life time validity, whereas Alive and Ivory also offer the free usage of voice and data worth Rs.2295/- with life time validity. Standard tariff of 1p/second is applicable to all smart phones for all local & STD calls and Rs 2/MB base tariff for data usage. We will always keep our prices the best in market and they would remain reasonable.

Q9. MTS recently came out with its TV commercials as well. What is your take on it?

We have come up with a lot of products and so we thought it is the right time to come up with TV commercial, however presently the commercials are focused on the calling cards. The data operators focus would remain on OOH and digital for marketing as of now. Also, our branded stores will act as demonstration centre.

Q10. MTS blaze is available in 84 cities which include the tier II cities as well. So where do you want to focus your market, urban metros or the semi urban mini metros?

We have the best data coverage in the entire India specially northern and central India. We are going deeper into the tier II and smaller towns and we would continue to expand our network and growth rate clearly indicates that there is a lot of demand in the market for these services.

Q11. Tell us about the market of MTS in Russia?

MTS is the largest operator in Russia. it is the number one there. MTS is the 72nd in the top 100 brands in the world and we completely dominate the Russian market. We are also present in the Soviet Union countries. Pretty much everywhere we are the leader, it only in India that we are in a strange kind of situation but again just give us time and we will be there.

Q12. Now that the festive season is coming up, is MTS planning for some specials offers and plans to increase its market share?

Well yes, we are looking forward towards the festive season in India. We will be coming up with a lot of special offers to lure the customers and we are also looking forward to launch some new phones during that time.

Q13. You have both Sameera Reddy and Yuvraj Singh as a brand ambassador. Do you think this would benefit MTS?

India loves Bollywood and Cricket. We have both with MTS. I am sure both of them will add enough face value to the brand.

Q14. Who do you think is your greatest competitor in the telecom and data industry?

Every single company is our competitor. We can’t simply judge anyone by the company size and the scale. But we are catching up and growing at an incredible pace. Last year we had three million subscribers, now we have more than six million subscribers, we have doubled the business and by next year we plan to double the figures again, so though we are growing quickly, we respect each and every competitor of ours in the market. .

Telecom: Tough times ahead

Telecom: Tough times ahead

Priya Kansara Pandya & Sunaina Vasudev / Mumbai October 7, 2010, 0:44 IST

Though tariff wars appear to be stabilising for now, the sector is still not out of the woods.
Telecom space has seen hectic activity during the September quarter — auction of 3G spectrum, new entrants like Uninor, MTS and Videocon, tariff wars and developments on the mobile number portability (MNP) front.

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With new operators not being able to make much of a dent, analysts see the tariff war peaking soon. Revenue growth in the second quarter of the current financial year will be keenly watched, adjusting for the fact that this is a seasonally slow quarter in terms of minutes of usage. Also, with tighter security norms impacting low-end customer segment usage, churn has picked up as well, besides lower subscriber addition in the North-East and Jammu & Kashmir. Analysts expect an average four-five per cent year-on-year (y-o-y) revenue growth this quarter for the telecom majors.
However, the revenue and margin outlook isn’t as sanguine. Once MNP is implemented, a fresh round of tariff cuts is expected for customer acquisition. The tests for MNP have started, say analysts, but implementation is expected to miss the October-end deadline. There will be additional costs related to the rollout of 3G services, including upgradation of the existing network. The tower infrastructure companies are also likely to come under the telecom regulator’s licence fee, further pushing costs.
After under-performing the BSE Sensex for about two years, stocks of Bharti and Idea have outdone the index by 15 per cent and five per cent, respectively, over the last three months, with Bharti’s free cash flow generation by 2011-12 being a strong motivator. Valuations relative to the market are attractive, but caution is a watchword, given the policy uncertainties and intensity of competitive trends. Any disappointment regarding subscriber usage or revenue per minute may impact these stocks in the near term and provide more attractive entry points to investors.

MTS Launches Janmat 2010, An Innovative Value Added Service

MTS Launches Janmat 2010, An Innovative Value Added Service For Its Customers In Bihar & Jharkhand

An IVR and SMS based service which will provide poll related information to MTS customers during Bihar State Elections 2010 ~
Patna, October 5, 2010: MTS, the mobile telephony services brand of Sistema Shyam TeleServices Ltd, today announced the launch of an Interactive Voice Response (IVR) and SMS based service, aptly called Janmat 2010. This innovative service will provide MTS customers with the latest information relating to Bihar State Elections.

Launching the service, M K Sachdeva, Chief Operating Officer, Bihar & Jharkhand Circle, Sistema Shyam TeleServices Limited (SSTL) said, “MTS is committed to provide an unmatched mobile telephony experience to all its customers. The launch of our latest offering, Janmat 2010 reflects the same endeavor. This service has been specially designed to provide information about Bihar elections to all MTS customers”. He further added, “By availing this service, MTS customers would be able to receive latest updates on Bihar elections and its analysis on the go”.

More About Janmat 2010, Service By MTS
Janmat 2010 can be availed by dialing “5303030” at a call charge of Rs. 3/min. The service will provide factual and unbiased information specific to an array of verticals. This will include news on nominations, updates about political parties, backgrounds of key contesting candidates of Bihar and their previous election performances. It will also offer MTS customers an in-depth view of constituency-wise results along with the predictions for forthcoming elections. In addition, customers will also be able to access light hearted jokes on all the election action.

About Sistema Shyam TeleServices Ltd.
Sistema Shyam TeleServices Ltd. (SSTL) is a joint venture between Sistema {LSE: SSA} of Russia and the Shyam Group of India. Sistema is the majority shareholder in this joint venture with a 74% equity stake; the Shyam Group holds a 23.5% stake and the remaining 2.5% is publicly held. SSTL has been allocated spectrum to provide mobile telephony services in all the 22 circles across the country.
MTS is well recognized in India and worldwide for its commitment to high quality and innovative telecom solutions. MTS has recently been ranked by Millward Brown as 72nd out of the top 100 brands in the world. In a short span of time, MTS has secured over 6 million subscribers in the telecom circles of Kolkata, West Bengal & Sikkim, Rajasthan, Chennai & Tamil Nadu, Kerala, Bihar & Jharkhand, Mumbai, Maharashtra & Goa, Delhi & NCR, Haryana, Karnataka and Andhra Pradesh. MBlaze, the data service of MTS, offered in 84 towns of India, has over 2 lakh subscribers so far since its launch in November 2009. MTS has more than 100 million subscribers across the world.
For more information visit: http://www.mtsindia.in

Sistema Vs Uninor Strategy : Will they succeed ?

Going for broke: Two new telcos redial plans

Surajeet Das Gupta & Mansi Taneja / New Delhi October 6, 2010, 0:18 IST

Telenor and Sistema are revamping their strategies in a market that is tougher than any they may have encountered before. But will they work?
Last week, the Telenor-appointed Managing Director for India, Sigve Brekke, flew to Oslo to assuage the sentiments of his company’s minority shareholders. They want the Indian operations sold because of $340 million racked up in losses. Brekke, who has headed Telenor’s Asian operations, was handpicked in July to replace the first CEO, Stein-Erick Vellan, of its Indian joint venture (JV) Uninor.

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Brekke told the shareholders he was revamping strategy: scrapping old tariffs and replacing them with innovative, but simple schemes that focused on consumers, enticing them to make Uninor their primary connection. He said he was ready to reshuffle the top management if it did not deliver. “The shareholders may not be convinced, but we are taking corrective measures. We have had a slower start on the revenue front than we had expected,” admits Brekke. Just a few kms away from Uninor’s office in Gurgaon, the boss at Russian giant Sistema’s JV with Shyam Telecom (which markets under the MTS brand), Vsevolod Rozanov, is nervously changing tack. Rozanov, who has been with the company since its launch in India, is focused on delivering high-speed data to consumers, instead of pushing voice services through its CDMA network.
He is doing so by aggressively hawking dongles, which are plugged into laptops for Net access on the move. This, he hopes, will help increase overall revenues, as well as average revenues per user (ARPUs). Says Rozanov: “We want to be the incumbents in the data business. And I am confident we are on the right track.”
Uninor and Sistema-Shyam are two of the half-a-dozen telcos given a licence in January 2008 that are fighting a bitter battle for survival in the country’s fiercely competitive and overcrowded telecom market. With a total of a dozen or so players jostling for business, tariffs are at rock bottom. ARPUs that the new players generate are half or even a third the industry average, and there is no revenue growth, even though investments are needed to expand.
But unlike other new players, these two companies have already invested over $4 billion in the country and mean serious business. Fledgling rivals like Loop Telecom, Datacom and DB-Etisalat are already looking to throw in the towel by surrendering their spectrum or have made only limited investments in an industry crying out for consolidation.
Sistema-Shyam’s new aggression is reflected in Rozanov’s expectation of about 50,000 new dongle subscribers every month, out of an incremental add of 500,000. In the last two months, MTS has managed to garner over 250,000 dongle customers, whose usage is much higher than the average voice customer. “Currently, 10 per cent of our revenues come from data, and this does not include the 8 per cent from value-added services like SMS. We think this number will hit 30 per cent in three years,” says Rozanov.
But many telecom analysts say that strategy could prove a recipe for disaster, with GSM operators now about to offer 3G services and also planning to offer dongles with speeds similar to that of MTS (3.2 mbps). The situation could worsen with the advent of LTE services, which offer even higher speeds (up to 300 mbps). The company also faces another challenge: the sale of dongles is dependent on laptop penetration, which is limited. So, even if Sistema-Shyam wants to sell more dongles, it cannot until laptop prices fall further.
Rozanov counters this by arguing that his company already provides services in over 200 key cities across the country and has a large distribution system in place, which will take a 3G service providers a long time to replicate. “As incumbents, even if we are among the top four or five in data after 3G players come, we are very much in,” says Rozanov. He also says work is on to get mass-scale laptops and tablet PCs at prices within $200, which will expand the market.
Also, with more players coming into the data market, consumers will learn the advantages of using high-speed data. “Currently, 20 per cent of our sales in Delhi and Mumbai are of dongles, which give only speeds of 128 kbps. Education will help more people go up the speed ladder,” adds Rozanov.
Uninor, on the other hand, is focused on voice. It believes that most customers actually have multiple SIM cards, so the challenge is to make them use your service as a primary. Brekke is trying to do so by being the first operator to offer dynamic pricing and scrapping the earlier “talk more, talk longer scheme”. Under the new scheme, the operator offers discounts of 5-60 per cent on calls depending on time and location. Says Brekke: “This scheme is simple: it incentivises customers to use Uninor as a primary SIM. Also it optimises network utilisation, as we can give more discounts when network use is low.”
Brekke has also yielded the stick when required. Since he took charge in July, the new rule is that circles, which do not perform on revenue parameters, will not get fresh capital investment until they put their house in order. Brekke says four circles might face the axe. He has already reshuffled the top management in at least two circles, Tamil Nadu and Karnataka. Berkke also sent special teams to circles that were not performing well to understand the problems and fix them.
Uninor under Brekke has also changed its marketing strategy: money would now be diverted to the trade and selling at street level. He has also replicated practices that Telenor has used successfully in other markets like Malaysia and Bangladesh. One example is the dynamic pricing tariff.
Brekke, who was sent to India to take tough decisions, has not spared the top management in the company s headquarters, either. Uninor has shifted out its earlier managing director, chief financial officer as well as chief marketing officer, who were instrumental in the initial rollout of services. Says Brekke: “We made changes in the top management. They helped us in the rollout phase. Now, we require expertise at the operational phase and people with expertise there were brought in.”
Detractors, however, say while Uninor’s tariffs are cheap, it cannot continue to offer customers such low prices. When its tries to raise prices, customers will vanish, as has been the experience of many other operators, they point out.
But Brekke says the new strategy is already showing dividends. One way to gauge this is the fact that the company’s revenues have gone up by a staggering 110 per cent from a mere '76 crore in the second quarter of this year to over '160 crore in Q3. In the same period, the subscriber base has also gone up by 79 per cent and ARPUs, which were less than '50, are also moving up.
Both parents Telenor and Sistema have responded to the need for a change in strategy in a market that is tougher than any they might have encountered before. But will the Indian consumer, whose churn is one of the world’s highest, give the new players a chance? Watch this space.

Shocking news from Sistema India: BS -Sistema Shyam plans IPO after December 2011 !!!!

Sistema Shyam plans IPO after December 2011 !!!! Mansi Taneja / New Delhi October 4, 2010, 0:39 IST Sistema Shyam, the Indian joint venture of Russia’s Sistema, is planning to come out with an initial public offer (IPO) in the fourth quarter of the next financial year. The company recently got $600 million (Rs 2,680 crore) investment from the government of Russian Federation, which will take around 18 per cent stake in the venture.  Click here to visit SME Buzz   Also Read   Related Stories News Now - Markets pare gains, IT and FMCG stocks weigh - Silver rises on industrial offtake, gold slides by Rs 10 - Wheat dara rises on flour mills buying - Mahindra donates $10mn to Harvard - RSP maintains growth, robust performance in Sept 2010 More “It will take about four-five months to clear all the formalities on the Russian Federation investment. We want our capital structure to be fixed first. We are already in discussions with merchant bankers. It is expected that we may come out with an IPO in the fourth quarter of 2011-12,” a senior official from Sistema Shyam told Business Standard. The official said the company was waiting for the right time to hit the capital market, as they were not sure how investors would take their business model. The company expects to be cash-positive in 2013. “We want to maintain our strong growth track record before we come out with an IPO,” the official added. Sistema Shyam offers mobile services under the brand name of MTS in India. It is licensed to provide CDMA-based services across the country. Prior to the Russian Federation’s inclusion, Sistema had a 73.71 per cent stake in the joint venture. The Shyam group held 23.79 per cent and the remaining 2.5 per cent was held by the public. The funds will be used for the expansion of MTS' services in India. It already offers service in 12 circles and expects to launch in the remaining ones by next year. It has about six million mobile subscribers on its platform. Although the Russian government deal was scheduled to close in 2009 and funds for the acquisition were earmarked in the 2009 budget, the process got delayed. This prompted the Russian government to vote again and transfer the sum to the 2010 budget. The Russian government will be utilising paRs of its rupee-rouble trade reserve balance of $2 billion (Rs 8,940 crore) in the Reserve Bank of India for procuring SSTL shares.

Sistema-Shyam approves Russian Federation's $600 mn investment 

NEW DELHI: Paving way for to pick up 20 per cent stake in Sistema-Shyam telecom firm, that operates under brand MTS, the shareholders of the company on Thursday approved the proposal at its Annual General Meeting

The Russian Federation will put $600 million (about Rs 2,800 crore) in the company, which got pan-India telecom licence to offer CDMA based mobile services in January 2008.


"It has been accorded to offer, issue and allot on a preferential basis in one or more tranches, up to 58.406 crore equity shares of Rs 10 each at a price of Rs 49.31 to the Federal Agency for State Property Management of the Russian Federation," the resolution, passed at the AGM, said.


The shares would be alloted within 12 months from the date of the shareholders' approval in the AGM.


Sistema-Shyam is a joint venture between Sistema, a Russian diversified group, and of India. Prior to Russian Federation's inclusion, Sistema had a 73.71 per cent stake in the joint venture, while Shyam Group held 23.79 per cent in the company and the remaining 2.5 per cent was held by the public.


The Board of Director, however, ensured that post this approval the foreign shareholding in the company would remain within the sectoral cap of 74 per cent as prescribed under the existing FDI policy for the telecom sector.


The company has already secured necessary approvals for Russian Federation's investments in the company.


When contacted, Shyam-Sistema spokesperson said "shareholders of have once again reposed the trust in their relationship with the Russian Federation by clearing the path for investments being brought in through the partnership."


SSTL said that the funds would be used for the expansion of MTS's services in India.


"SSTL plans to use the funds to be received to finance development of the company's activities, the expansion of its branded retail network and launch of operations in a number of new circles," it added.


The company has 12 operational circles and expects to start services across the remaining circles by next year. It plans to launch services in UP (east), UP (west) and Gujarat by the end of this calendar year.