Sistema wants MTS to go global

26 Oct 2011

Russia

According to Dow Jones, Moscow-based conglomerate AFK Sistema has announced that it wants to turn its Russian wireless unit Mobile TeleSystems (MTS) into a global telecoms player, with plans to move into a number of new markets. Sistema owner Vladimir Yevtushenkov commented: ‘We have made a decision to build MTS into a global player, and this means 200 million to 300 million subscribers and several dozen countries’. Although Yevtushenkov was not drawn on any potential acquisition targets, he did indicate that he views the conglomerate’s Indian telecoms operator Sistema Shyam TeleServices Ltd (SSTL, also known as MTS India) as an integral part of his plans; Yevtushenkov claimed that he expects the Indian cellco to sign up one million new subscribers every month.
As at end-June 2011 MTS was the largest wireless network operator by subscribers in Russia and the CIS, with operations covering all 83 Russian subjects (administrative subdivisions), both directly and via ownership of local concessionaires. In addition it has subsidiaries in Armenia, Belarus, Turkmenistan, Ukraine and Uzbekistan, which when counted alongside its domestic operations gives it a footprint covering more than 230 million people. In 2008, in a move outside of its familiar Eastern European territory, Sistema entered the Indian wireless market via SSTL (now MTS India). As at June 2011 MTS India reported 11.725 million subscribers, up from 5.138 million one year earlier. Despite strong annual gains MTS India has struggled to meet its previously-stated targets; it predicted 20 million subscribers by 2010, 35 million by 2012 and 56 million by 2014.

Russia, Mobile TeleSystems (MTS) (inc. Comstar), Sistema Shyam TeleServices (MTS India), Sistema, Corporate/Financial

MTS offers international roaming

17 Oct, 2011, 02.04PM IST, PTI

Sistema Shyam TeleServices Limited offers international roaming in 231 countries

NEW DELHI: Pre-paid customers of Sistema Shyam TeleServices Limited (SSTL), which offers mobile phone services under the MTS brand, can now roam across networks in 231 countries on their existing sim cards.

MTS today launched international roaming services for its pre-paid subscribers, enabling them to roam across 433 GSM networks in 231 countries, SSTL said in a statement.

MTS customers will be able to avail services in countries like the United States of America, Canada, Brazil, Chile, UK, France, Germany, China, Singapore, United Arab Emirates, Bahrain, Australia and New-Zealand, among others.

The company has also launched a dual mode SIM card which would work both on GSM handsets while abroad and on CDMA handsets while in India.

The company will use MACH telecom software to facilitate roaming by its pre-paid customers across 433 GSM networks in 231 countries.

The company claims that with this announcement, MTS becomes the first telecom operator in the country to provide international data roaming for CDMA pre-paid customers.

"With a view to enhance connectivity and convenience, we have now introduced international roaming services for our customers. This would enable our customers to stay connected while travelling abroad without changing their phone numbers and also enjoy seamless data connectivity on the go internationally," MTS India Chief Marketing and Sales Officer Leonid Musatov said.

MTS customers on international roaming would have access to GPRS services in 206 countries on 322 telecom networks.

Additionally, MTS customers will be able to enjoy high-speed downlink packet access (HSDPA) services in 114 countries on 145 roaming networks.

"We are delighted that MTS India selected our market-leading, inter-standard roaming solution to be the first in India to provide its pre-paid customers with seamless access to international roaming on GSM networks across the world," MACH India Regional Vice-President (Sales) Raghunatha Chary said.

SSTL is a joint venture between Sistema of Russia, the Russian government and the Shyam Group of India. Sistema is the majority shareholder in the joint venture company.

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MTS India launches data coverage on National Highway 4 ‎

MTS plans Rs 130 cr capex in state, TN

BS Reporter / Chennai Oct 13, 2011, 01:00

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Provides high speed mobile broadband in 40 towns across Tamil Nadu and 35 towns across Karnataka.
Sistema Shyam TeleServices, a joint venture between Russia’s Sistema and Indian firm Shyam Group, which is into telecom services under the brand MTS, plans to expand in Karnataka and Tamil Nadu for an investment of around Rs 130 crore during 2011.

The company on Wednesday announced launch of its second seamless high speed data (HSD) connectivity in India, on the highway connecting Chennai and Bangalore. It added it is planning to expand data coverage between other regions, including small towns.

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Cheenu Seshadri, chief strategy officer and COO, south and west regions, MTS India, said, The service would cater to data connectivity needs of industrial hubs between the two cities and the travellers on the go. We are planning to cover more areas, including highways and smaller towns with seamless HSD services in future. MTS India presently has around 13 million wireless subscribers.
It has also announced new tariff plans for customers tra-veling everyday between the two cities. Presently, MTS provides High Speed Mobile Broadband services in around 40 towns across Tamil Nadu and 35 towns across Karnataka.
The company has so far invested around $3 billion in India and would continue to invest to expand data connectivity services, he added.
It is planning to launch two to five phones in India every quarter in future, in the price range of Rs 3,000 to Rs 20,000 a handset, as part of expanding its data connectivity service. It has recently announced launch of two affordable android phones in India.
While the manufacturing of phones would be outsourced, the company plans to leverage the products as a strategy to increase the reach of its services to the customers.
The company earlier launched the HSD connectivity services in the 265 km long Delhi-Jaipur highway.

MTS india welcomes NTP 2011

More discussions needed before finalising telecom policy: Operators

Our Bureau

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‘Proposal to give infrastructure status will provide much-needed relief to the sector'

New Delhi, Oct. 10: 

Telecom operators have said that the draft telecom policy unveiled on Monday was good on intent but required more discussions before it is implemented.

“The draft NTP 2011 is expected to take the country into the next stage of inclusive growth. We understand that the Government will now initiate the consultative process across multiple stakeholders, including the telecom operators.

“Idea Cellular will actively participate in this consultation as the country formulates its new telecom policy. There are several areas that are included in the proposals and we will need to review each of them with our experts, before reverting to the policy maker, with our comments,” said Mr Rajat Mukarji, Chief Corporate Affairs Officer, Idea Cellular.

Shyam Sistema, which operates mobile services under the MTS brand, said the policy has to look at the interest of the CDMA operators. Mr Vsevolod Rozanov, President and CEO, MTS India, said, “We at MTS welcome the spirit of the new telecom policy. The strong focus to make affordable and reliable broadband available on demand by 2015 along with one nation, one licence regime is a welcome move. To make all this happen, we look forward to the formulation of supporting policies so that more spectrum can be released.”

“Equally significant would be the release of policy details specific to a range of issues, including delinking of spectrum and telecom licence, allowing of spectrum trading, pooling and sharing and also new M&A guidelines. One also needs to understand, how NTP 2011 seeks to look after the interest of the CDMA operators and their customers,” he added.

Bharti Airtel said that though the policy is in the right direction and signals the government's strong focus on future growth areas, final policy should provide level playing field and encourage more investments.

“The proposal to give infrastructure status to the telecom sector and rationalisation of taxes and levies will provide much-needed relief to the sector. This will help in further expansion of networks thus realising the Government's vision of providing connectivity and affordable telecom services to all. We look forward to constructive deliberations on the draft policy proposals and hope that the final policy will provide level playing field, encourage more investment in the sector - particularly in rural areas and for broadband and ensure the long-term sustainability and viability of the sector,” said a Bharti Airtel spokesperson.

The Association of Unified Service Providers of India (AUSPI), the industry body representing the CDMA operators, said that it supported move to abolish roaming charges, full mobile number portability.

“Emphasis on affordability of services is welcome step and AUSPI is confident that DoT will make available at affordable price optimum quantity of spectrum, rationalise levies to bring them down to those in other countries. AUSPI welcomes projects to create further capacities but urges that capacities already created in public and private sector be gainfully utilised first,” said Mr S.C. Khanna, Secretary General, AUSPI.

“Delinking of spectrum from licences — the cost of spectrum will go up which will, in turn, increase customer servicing costs. There appears to be no clarity on M&A guidelines which industry badly needs to rationalise and consolidate,” said Mr Hemant Joshi, Partner, Deloitte Haskins & Sells.

Keywords: draft telecom policy 2011,