Shyam-Sistema refutes Trai charge on roll-out obligations

Shyam-Sistema refutes Trai charge on roll-out obligations
Refuting telecom regulator Trai's charge that it has not met its roll-out obligations, Sistema-Shyam, on Thursday said the company has launched services in all 22 circles and has over seven million subscribers. "Amongst the new telecom operators, Sistema Shyam Teleservices Ltd (SSTL) was the first company to launch its services. The company has complied with all its roll-out obligations in all the 22 telecom circles and has already secured over 7 million voice subscribers and over 3,00,000 data customers," the company said in a statement.
Telecom Regulatory Authority of India (Trai) on Thursday said Sistema-Shyam has failed to meet roll-out obligations in 10 circles and has recommended cancellation of its licences in those areas.
A joint venture between India's Shyam group and Russian giant Sistema, Sistema-Shyam is the only new telecom operator which is offering CDMA based services across the nation.
Among the new licensees, no irregularity was found by the government auditor CAG, which has said that 2G spectrum allocation by the government cost the exchequer up to Rs 1.76 lakh crore. CAG report also mentioned a few companies, saying that they were ineligible for telecom licences.
Russian firm Sistema holds nearly 74% equity in the company, and has also roped in the Russian government which holds nearly 19 per cent stake.