| Sistema Shyam may get NLD licence soon |
| Press Trust of India / New Delhi December 15, 2011, 20:30 IST |
The Telecom Ministry is likely to grant National Long Distance (NLD) licence to new telecom operator Sistema Shyam TeleServices (SSTL), which offers mobile services under MTS brand.
"...The proposal may be considered along with the draft of Rs 15,000 as processing fee," according to a Department of Telecommunications (DoT) note.
The company has fulfilled almost all the criteria required for being eligible to have NLD licence.
The company has submitted the certified copy of memorandum of article of association (MAA) and it has also submitted a copy of the paid up capital as of March 21, 2011 is Rs 31,93,92,00,000, so the networth criteria has been fulfilled.
The applicant company (SSTL) has stated that they have 26.05% Indian equity and 73.95% foreign equity. The foreign equity of the applicant conforms to 74% ceiling for which they have acquired FIPB approval.
The company has submitted business plan with funding arrangement as required under NLD guidelines.
With this the DoT has said that a letter of intent to SSTL for NLD licence may be issued.
Sistema Shyam TeleServices provides telecom services under the brand MTS with over 14 million wireless subscribers and operates in all 22 circles.
At the end of September 30, 2011 (Q3), the total capex investment by the company in India stood at Rs 6,243 crore, including Rs 161.7 crore made during the quarter. Consolidated debt from banks and financial institutions at the end of Q3 stood at Rs 6,860 crore.
Similarly at the end of Q3, SSTL's data card subscriber base stood at 1.07 million subscribers. The company's mobile subscriber base reached 13.27 million.
SSTL is a joint venture in which Russian conglomerate Sistema holds 56.68% stake, while the Russian government holds 17.14%. India's Shyam Group holds 23.98% and the remaining 2.2% is held by others.
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