Non-voice business contributes 29% to MTS income in Q2 2011

Sistema Shyam TeleServices, which operates its telecom
services under the MTS brand in India, posted 18 percent increase in revenue at
INR 2,782 million for the second quarter ended June 30, 2011.

Quarterly revenues grew faster than wireless (Voice &
Data) subscriber base, which was up by 17 percent to 11.7 million.


Non-voice revenues from both data and mobile VAS for the
quarter up by 36 percent Q-o-Q to INR 796.9 million, which now contributes 29
percent of total revenue and the contribution has increased by 3.8 p.p for the


Contribution of non-voice revenue is significant for MTS.
This is a significant indication for strong revenue stream in coming months as
there can be pressure on voice business. Major Indian mobile operators’
non-voice revenue (mobile VAS) is around 10-15 percent.


MTS’ blended mobile ARPU for the last three quarters
remained consistent at INR 82, as against a declining trend in the market.

MTS’ data card subscriber base for the quarter up by 40
percent to 820,000 subscribers. SSTL added 236,000 data card subscribers during
the quarter, highest additions in a quarter till date. By the end of Q2 2011,
SSTL expanded its high speed mobile data services to more than 200 cities in
India, including all five metros.

Consolidated OIBDA loss for the quarter stands at INR
4,101 million. OIBDA margins improved 46 p.p. Q-o-Q.


In spite of the continued challenges faced by the
telecom industry in India, SSTL is on track to successfully execute its 
data centric: voice enabled strategy. We have received an extremely favorable
response from the market to our strategy. We remain committed to be a Step
Ahead” of competition, when it comes to focusing on innovation and delivering
greater customer value to all our wireless customers.”

The growth in subscriber base of the company was largely
driven by further strengthening of the distribution network, an increase in its
retail universe across India and contribution by newly launched circles. Mobile
subscribers’ MoU for Q2 2011 declined to 295 min vs 305 min in Q1 2011; the
decline in MoU was mainly because of the decreasing share of free on-net

Industry net subscriber addition in Q2 2011 dipped to
39.9 million compared to 59.4 million in Q1 2011. Total subscriber base reached
852 million and wireless tele-density was 71 percent at the end of Q2 2011.
 SSTL’s subscriber market share increased to 1.38% in Q2 2011 (vs. 1.24
percent in Q1 2011).

The CAPEX investments made by SSTL in India at the end of
Q2 2011 stands at INR 60.8 billion; this includes the investment of INR 2,527
million made during Q2 2011. Consolidated debt from banks and financial
institutions at the end of Q2 2011 stands at INR 57,367 million.


By Team
[email protected]