Sistema Shyam TeleServices, which operates its telecom services under the MTS brand in India, announced that the current business conditions in the country are prohibiting the company to commit investments for expansion including LTE.
We are concerned about the current business conditions. There is no clarity about availability of spectrum. Without preparing a spectrum roadmap for five years, no operator can do business in India. There are issues concerning transparency and clarity for us. Current issues are prohibiting us from making commitments for investing in India,” said Vsevolod Rozanov, president and chief executive officer of Sistema Shyam Teleservices.
The present business atmosphere may prompt Sistema Shyam to rethink about its LTE plans. Sistema Shyam TeleServices, which did not participate in the 3G and BWA spectrum auction, was planning to join the LTE race as and when the government auctions the spectrum.
Where is the spectrum? We are not sure about participating in LTE auction. It will depend on the business condition. The availability of spectrum in the future does not excite any telecom investor,” Rozanov added.
Sistema Shyam already made CAPEX investments to the tune of INR 58 billion. This includes the investment of INR 2,971 million made during Q1 2011. Consolidated debt from banks and financial institutions stands at INR 55,841 million.
Consolidated revenues for the first quarter ended March 31, 2011 were up by 22 percent Q-o-Q to INR 2,362 million. During the quarter, revenue growth has been faster than the growth in total wireless (Voice & Data) subscriber base, up by 19 percent to 10.05 million.
The company expanded High-speed data (HSD) services to 130 cities of India by the end of Q1 2011. Currently, MTS’ HSD services are present in over 150 cities. It will add 100 more towns in the next six months.
Non-voice revenues from both data and mobile VAS for the quarter up by 33 percent Q-o-Q to INR 588 million, which contributes 25 percent of total revenue and the same has increased by 2 p.p for the quarter.