Govt allows Telecom firms to buy Chinese equipment - Booster for MTS India

Govt allows Telecom firms to buy Chinese equipment

HT Correspondent, Hindustan Times
Email Author
New Delhi, July 28, 2010

In a major relief to Chinese telecom equipment manufacturers including Huawei and ZTE, the government on Wednesday amended licences issued to telecom service providers, enabling them to buy equipment from all firms. Under new licence conditions, telecom operators will have to keep all details regarding equipment design and password in an escrow account. This will allow security agencies to monitor networks whenever required.

Earlier, the government had made it mandatory for telecom service providers to get security clearances from the department of telecommunications (DoT) before buying any equipment.
However, in March, DoT issued a notification to all the operators saying: “…Security clearance is not granted for procurement of telecom equipment in respect of Chinese OEM firm namely Huawei Technologies, ZTE Corporation, Acelink Technologies and UT Starcom.”
This virtually banned operators from buying equipment from these companies.
ZTE and Huawei have emerged as leading equipment suppliers in the last two years with all the new operators.

MTS India get 4.66 lac subscribers in Jun 2010.....

With 4.66 lac subscribers added in Jun 2010, the total subscribers with MTS india now are above 5.1 million.

IPO filing after Russian GOvt investment - CEO

Can Russian investment create more jobs in Indian telecoms market?

The Russian-India telecoms deal is close to being clinched and could open up the window of new job opportunities and employee benefits.

Russia had announced its decision to buy a 20 per cent stake in Sistema Shyam Teleservices Limited (SSTL) in 2009. However, delays pushed the deal to the present financial year and should be secured by the third or fourth quarter.

After the deal goes through MTS will be part-owned by the Russian government, SSTL as well as the members of the Indian population.

SSTL is scheduled to comply with EBITDA regulations by 2013, it has been confirmed by company sources. 

Vsevolod Rozanov, chief executive of MTS, said: "For regulatory purposes, the capital structure should be frozen before the IPO. As soon as the capital structure is fixed after the Russian government's investment, we can proceed with the IPO."

The company that operates under the MTS brand in 12 of India's 22 telecommunications sectors offering CDMA services to customers.
Posted by David Farrior

Keenly awaiting the low priced high speed Android MTS Phone ......

MTS to launch Android phones in India

June 24th, 2010 by gaurav Leave a reply » MTS will introduce Android smartphones for Indian customers next month. The company also plans to keep prices competitive. Leonid Musatov, chief marketing officer, SSTL said, “We plan to make smartphones available for our customers beginning this July. We’ll be extremely aggressive on the price front, we don’t intend to make vendor margin.”
He added, “We want to offer innovative offerings like dual technology smartphones. I also believe that Android is the most convenient way for a consumer to use mobile internet.” So get ready to see more of Android in India soon.
via

Breaking News : Russian Govt deal has reached PM Putin's table for final signature!!!!

MTS has reached premiere (PM Putin)
The draft government decision on buying a 20% stake in Indian Sistema Shyam Teleservices Ltd. (SSTL, brand MTS) is included in the Government

Oleg Salman
Maxim Tovkaylo
Bulletin

(translated from Russian Newspaper Vedomosti)

07/15/2010, 129 (2647)

Ministry of Finance agreed on a draft resolution on buying Rosimuschestvo share in the Indian cellular daughter Sistema, told "Vedomosti" a source close to SSTL. The draft is submitted to the government and will soon be signed by the prime minister, confirmed his spokesman Dmitry Peskov.

The state expects to spend $ 676 million deal from the Indian Rupee debt to Russia. From the Indian side of the deal, everything was ready a year ago: Regulators have issued permits, and the shareholders approved the sale of SSTL Rosimushchestvo 19,8% of the enlarged share capital. But the Russian government to agree a deal did not succeed. The reason was Lack of elaboration Rosimushchestvo agreement with the "system" requiring the AFC after five years of purchase from the state share of SSTL at market value or at the purchase price in dollars, with interest. As a result, everything had to start anew - to make the budget expenditure on the transaction and prepare a draft decision. Is there in this project repurchasing shares SSTL «System", the representative of the Ministry of Finance yesterday did not elaborate. Ministry of Economic Development did not respond to questions "Vedomosti".

In June, the selected Rosimushchestvo appraiser - a group of companies "Avers" updated cost estimates SSTL; it increased by about 5% to $ 3.2 billion size of the package, which can be bought Rosimuschestvo - 16-22%. After receiving an update assessment, Rosimuschestvo sent it to the Ministry of Economic Development, knows the source of one of the departments.



Read more: http://www.vedomosti.ru/newspaper/article/2010/07/15/240596

MTS' Rs 200 crore advertising business up for pitch....

MTS' Rs 200 crore advertising business up for pitch

Antara Ghosal | afaqs! | New Delhi, July 15, 2010

MTS India, the CDMA mobile telephony brand, is on the lookout for a creative agency, after the contract with the incumbent agency, Saatchi & Saatchi has expired. The company is now on the lookout for a fresh creative approach and idea.

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Five leading agencies are in the fray, along with the incumbent, which is trying to retain the business. The size of the business is estimated to be more than Rs 200 crore.

Prasun Kumar, director - brand and marcom at MTS confirms the development. Kumar says, "This is a process driven pitch-process called for a review of the business after expiry of contract. The brief given to the participating agencies is to come up with creative solutions for certain strategic requirements before us."

The first round of presentations is over, and the results of the pitch are expected by August 10.

MTS' media duties are handled by Media Planning Group (MPG) India, the media buying arm of Havas Media.

MTS, which is a joint venture between Sistema, a Russian telecom company, and Shyam Telelink, has licences for 22 circles in India. Of this, it is operational in 12 circles with a customer base of 4.5 million. The coming year will see the telecom player entering other circles as well.

Shyam Telelink started with a brand, Rainbow in Rajasthan. The business was handled by Lintas Pickle then. Later, when it was entered into an JV with Sistema, the brand was renamed as MTS, and the creative duties were awarded to Saatchi & Saatchi.

The brand is known for disruptive marketing. To create a buzz around its launch in the Capital, the telecom player arranged for a free entry on DND Flyover - the main route to enter Delhi from NOIDA for all vehicles - to convey the message of a congestion-free network.

MTS going door to door.....

MTS flags off ‘MTS on Wheels’


Submitted by news on July 14, 2010 - 11:56

A unique initiative to address all customers needs



Kolkata, July 2010 - MTS, the mobile telephony services brand of Sistema Shyam Teleservices Limited (SSTL) today flagged off ‘MTS on Wheels’- a unique initiative first time in West Bengal aimed at taking telephony services to the door of customer. This is a month long activity started today from Kolkata and will complete its journey at Burdwan by August 2010. During the period, the bus will travel through various cities and towns of West and North Bengal and will address all customer needs related to voice and data services.



‘MTS on wheels’ is an air conditioned bus comprising of all the facilities available to customers at MTS branded retail outlets across the country. There are different zones viz. Instant activation zone, Instant recharge zone, Display zone, VAS zone, Data product zone, Customer Service zone and Play & Win zone to ensure seamlessly address customer requirements. The facilities provided by the instant activation zone will range from instant activation of SIMs, instant clicking of passport size photographs and photocopy of POI/POA.



Speaking on the occasion, Mr.Keshhav Tiwary, COO, Kolkata & West Bengal, Sistema Shyam TeleServices Ltd said, “This unique initiative was conceived to ensure MTS reached out to more and more people in the state of West Bengal and providing them with high quality services offered by MTS. Our aim is to make the customer experience high speed voice and data service without making any extra effort. I am confident that this will be another step to bring us closer to our existing customers and expand our family”.



Various discounts and gifts are also up for grab for customers availing MTS connections from this zone. Customers can avail instant recharge facilities from the recharge zone and take demos from the VAS zone. In the data product and display zone, customers can experience the quality of data services through free browsing and will be given discounts on purchase of data products. While the customer service zone will cater to address areas like customer voice capturing, issue resolution and handset servicing, the play & win zone will have provisions for magic shows and games for children.



MTS continues to expand its presence across India by offering quality voice and data services at the most competitive and affordable price. MTS is a front-runner in introducing world-class, cutting edge technologies in India to enhance the customer’s experience. The current EVDO technology is at par with the 3G services, which are yet to be rolled out by other telecom operators. MTS has recently been conferred with ‘Fastest Growing Data Operator Award’ by CMAI at the National Telecom Awards 2010.

Rumour : Merchant Bankers' advice seeked

Our sources in the company have informed us that the company managment had recently met with a few top Merchant Bankers for the forthcoming issue plans. There is no confirmation of any appointment yet.

The way things are progressing, it is our view that the company will seriously push for the IPO post the infusion of funds from the Russian government which are expected any day.....

MTS view on minority shareholders......

Though not a direct impact to the shareholders here in India, this following news piece certainly brings out few points that :

1. Sistema / MTS has a reasonable and "Just" view towards its minority shareholders
2. Good Corp Governance is being practiced and company is appreciating the position of the shareholder.
3. In our case, if there is no IPO (just in case), we can expect the company to buy back at a fair market price

- AMSOST

Russia MTS to buy out Comstar minorities at premium 25 Jun 2010, 1120 hrs IST,REUTERS

MOSCOW: MTS, Russia's No.1 mobile phone operator has offered to buy out minorities in Comstar, at a premium to the market, Kommersant business daily reported on Friday. By persuading more minorities to part with stakes through offering a higher price, MTS should be able to buy more shares and will have to swap less of its own stock for Comstar's in order to complete the acquisition. Thus MTS's parent AFK Sistema should be able to keep control of the end company. MTS may spend 8.3 billion roubles ($268 million) buying out minorities in its fixed line unit at 220 roubles per share, Kommersant said citing sources familiar with the deal. The shares at Comstar closed at $6.55 per GDR, which is equal to one share, on Thursday, implying the buyout price of 220 roubles ($7.10) offers an 8.4 percent premium. If the minor shareholders agree to sell more than 9 percent in Comstar MTS would buy the excess shares at 213 roubles per share, Kommersant said. The merger would enable MTS to take full advantage of the synergies from its 2009 acquisition of a controlling stake in Comstar, in which it now holds 62 percent. Shareholders who do not take up the buyout offer would swap one share in Comstar for 0.825 shares in MTS, Kommersant said.

Is the current telecom bounce signalling bottoming out of the sector?

India's Stocks Advance to Three-Week High, Led by Bharti Airtel

Futuristic M commerce not so far away now......

Mobile phones become metro tickets for MTS subscribers in Russia.....sign of things to come here in India...

In autumn 2010 MTS subscribers will be able to use their mobile phones to pay for metro trips, according to a report in Vedomosti. To turn a usual mobile phone into a travel card will involve changing a SIM – card and installing a small internal aerial at the cost of around $10. The new – SIM card will have a special software – a virtual purse, where the money for future metro trips could be transferred from the subscriber’s personal account. The ticket cost will stay the same, with all discounts also remaining valid, and users will simply need to put their mobile phone against the ticketing machine at the entrance to the Metro. According to MTS, the Company intends to wire up to this service to several hundred thousand people during the year. According to Oksana Pankratova, a partner at AC&M – Consulting, MTS charges about 3-5% for goods and services provided through the mobile commerce service and can charge the same from the Metro.
Dmitry Gaev, the head of Moscow Metro, says that this will enable users to avoid Metro queues, and believes that it will boost passenger traffic, while MTS will gain on increased numbers.

3.1 Mbps capable CDMA smart phones getting launched....where is MTS ??

India's first CDMA Android smartphone at Rs 19,900.....MTS hurry up !!

Reliance Mobile and Samsung Mobile on Thursday announced the launch of India's [ Images ] first Android-powered CDMA handset, Samsung Galaxy i899.
Samsung Galaxy i899 will offer an enhanced experience of seamless speed data on the move, offering speeds of up to 3.1 Mbps to Reliance Mobile customers.
The phone is priced at Rs 19,900, Reliance Mobile customers upgrading to Samsung Galaxy i899 will also get free data usage on Reliance Netconnect Broadband+ - 10GB for 1 month for prepaid customers and 15 GB per month for 2 months for postpaid subscribers.
The new smartphone available only on Reliance Mobile network will also be the first CDMA device to be launched in India pre-installed with Android market, an online applications store developed by Google for Android devices.
The new Samsung Galaxy i899 on Reliance Mobile CDMA network offers:

• Display: 3.2" HVGA, 16M color, AMOLED  with touch screen panel.
• Camera: 3.2 Mega Pixel with Auto-focus and LED flash.
• Connectivity : Bluetooth 2.1(HSP/A2DP) / WiFi / USB 2.0.
• Data: Download Internet Speeds up to 3.1 Mbps; Upload Internet Speeds up to 1.8 Mbps.
• Browser : Mobile Safari [ Images ] web browser supported.
• Memory: 230 MB built-in memory, expandable up to 32GB through microSD slot.
• Battery:  1440 mAh battery capacity.
• DivX Video Playback Supported.
• Preloaded Apps : Android Market, Google Maps, Facebook, Gmail, Google Talk, MySpace, Orkut , YouTube.
• Users can download and install various apps from Android Market.

"The launch of Samsung Galaxy i899 Smartphone, is in line with our strategy to offer next-generation services with unmatched  voice clarity, hi-speed wireless data network access and ultra-fast application downloads on India's largest and only nationwide CDMA mobile service to Reliance Mobile customers," Vrajesh Shelat, head of handset & data services, Reliance Communications [ Get Quote ], said in a media release.
The touch-screen CDMA smartphone would also enable high-speed access to popular social networking sites like Facebook, Orkut, MySpace, et cetera.
The phone has a 3.2" AMOLED touch-screen, a 3.2 megapixel camera, a media player and expandable memory up to 32GB. Samsung Galaxy i899 also comes with popular smartphone features including support for phone, email, text messaging, Wi-Fi, HTML web browser, etc.
Announcing the launch, Ranjit Yadav, director, mobile and IT, Samsung Electronics, said, "With this association we hope to target a large consumer base of Reliance Mobile subscribers by offering them the feature rich Galaxy i899, India's first CDMA Android Phone. Applications from the Android Market can be easily downloaded and installed on to the Galaxy  i899 very fast,  thereby opening up an entirely new world of applications for the mobile phone users , which they can further customize as per their preferences."