Nov 29 2009 , New Delhi
MTS of Sistema Shyam Teleservices has rolled out nine telecom services and has more n Do you think that the telecom space is crowded and there is no space for new players?
There is a lot of potential in the Indian telecom space, which is a reason we are seeing entry of new players. If you see the tele-density, we have not yet arrived. At present, the tele-density is around 40 per cent and the rural market is yet to witness the growth. Mobile is a business case in India, and the growth in revenues is driving the foreign operators to enter the country.
n With 8 to 10 mobile operators in the market, when do you see the consolidation happening?
The telecom industry is capital intensive and we see consolidation happening in this sector soon. The roll-out investment for telecom network is huge, which will force small operators to collaborate in the long-term.
n As a new entrant, how are you positioning the MTS brand in India? What is your USP? Since you have a universal access service license, are you looking at offering services as an internet service provider?
We are positioning MTS as a congestion-free network and quality of service. With a number of operators in the market, the customer has a lot of options. But every consumer is concerned about the voice quality, superior service and better tariffs. As a CDMA we have the edge to offer better voice and data services. At this stage, when we have launched as a telecom operators we are not looking at diversifying as an ISP.
n With telecom operators offering competitive tariffs, do you think that the tariffs have hit rock bottom?
The current tariff plans is benefiting the consumer to a great extent. In this case the subscriber is the winner. I do not think that the tariffs have reached the bottom. The prevailing rates are likely to continue for some time and might even go slightly down.
n In many mature markets, mobile number portability (MNP) has not yielded positive results. How will the subscribers react to the MNP in India as the industry prepares for it?
Number portability is a positive step in this competitive telecom market. However, the subscriber churn rate will not be high. The market might witness high churn level in the first three to six months, but is likely to remain stable after that. Major subscriber churn may not happen as majority of subscribers are in the pre-paid regime and are already free to change their service providers.
n What are your plans for 3G? Is Sistema planning bid for 3G spectrum?
Regarding 3G spectrum, we have not made any decision on bidding.
n What is the total investment you have earmarked for rolling out the network across the country?
We had earmarked a total investment of $5 billion, of which we have already invested $1.5 billion. We are planning to invest the remaining $3.5 billion in the next 5-6 years
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