Russian Federation to invest in MTS, launches services in Haryana

If everything goes well, The Russian Federation might invest $ 800 million in MTS India, the mobile telephony services brand of Sistema Shyam TeleServices Ltd. The money invested would be utilised in funding the company’s expansion plans which includes expanding its network to remaining 11 circles in India for which the company has licence.

Meanwhile, the company launched its CDMA service in Haryana. Speaking to Business Standard, Sistema Shyam Teleservices Ltd, deputy chief executive officer T Narasimhan said, “The Russian Federation is keen to invest $ 800 million in the company. For the proposed funding, the FIPB (Foreign Investment Promotion Board) has cleared the proposal and the due diligence process has already been initiated by the Russian Federation and we expect that it would be completed within 3-4 months.”

According to him Sistema would dilute over 20 per cent of its equity to the Russian Federation. It is worth noting that Shyam TeleServices (SSTL) is a joint venture between Sistema of Russia and the Shyam Group of India. Sistema is the majority share holder in this joint venture with a 74 per cent equity stake, along with the Shyam Group holding a 23.5 per cent stake and the remaining 2.5 per cent being publically held. SSTL has spectrum to provide mobile telephony services in all the 22 circles across the country.

Already, MTS has crossed the 4 Million subscriber base in the 11 circles which it operates. It is present in telecom circles of Rajasthan, Bihar/Jharkhand, Kolkata, West Bengal and Sikkim, Chennai, Tamil Nadu, Kerala, Karnataka, Mumbai, Maharashtra and Goa, Haryana, Delhi and NCR.

Commenting upon the expansion plans, he added,” We have plans to roll out our services in remaining 11 circles of India in next 12-15 months. Already we have invested $ 1.5 billion in rolling out of our services in 11 circles and further plans to infuse $ 1 billion in expanding our network to another 11 circles. We expect that we would have a subscriber base of 15 million after completion of national rollout. Also, We would be able to reach break even point by 2013.”

In this fiscal the company will extend its services to 3-4 new circles. Meanwhile the company launched its services in Haryana. It services will now be available across Haryana with its half a paisa per second tariff voice services and high-speed mobile Internet service, MBlaze in four of its districts. The company has invested Rs 300-400 crore for launching its services in Haryana. It also launched a special inaugural offer of a ‘Million minutes free’ for life (MTS to MTS) on its MCard 498 plan.

The half paisa per second offer for all local calls will be available to Haryana subscribers on the FRC99 plan with a validity of 30 days.

MBlaze will be available on a pre-paid platform in the districts, Panipat, Sonipat, Rohtak and Bahadurgarh.

MBlaze was available in Haryana from the last week of 2009. With the expansion voice services, MTS has significantly completed its presence across the State.