Shyam-Sistema allocated start-up spectrum

The government has allocated start-up spectrum to CDMA operator Shyam-Sistema in three circles, making it the first company to be allocated the radio frequency for rolling out the services.

The company, a joint venture between India's Shyam Telelinks and Russia's Sistema, has been provided 2.5 MHz of spectrum in the North-East, Jammu & Kashmir and Assam circles.

When contacted, Shyam Group Chairman Rajiv Mehrotra confirmed the development.

The 2.5 MHz of CDMA spectrum is equivalent to 4.4 MHz of GSM spectrum, and the company will begin services across seven states in these three circles.

Earlier, during his visit to the country, Russian conglomerate Sistema's vice-president and head of strategy and development Anton Abugov had said the company was planning to invest around $5 billion in India for its telecom foray. The investments were to be made over a period of three years.

Sistema owns 51 per cent stake in the joint venture firm Shyam-Sistema, which at present provides CDMA services in Rajasthan.

The company would also use the dual technology clause to foray into GSM arena.

According to Department of Telecommunications officials, the government will begin releasing of spectrum to other applicants starting next week. This will be followed by releasing of GSM spectrum, they added.