Sistema Shyam TeleServices Ltd (SSTL), which operates under the brand name of MTS, will opt for a technology upgrade to provide faster data downloads at higher speeds for its subscribers.
The company will start trail runs for its new technology – called EV-DO Rev.B - in Rajasthan by September.
MTS has a wireless subscriber base of nearly 11 million with 28 per cent of its revenues coming from non-voice-based services. It controls about 1.3 per cent of the nearly 800 million telecom market. The commercial use of EV-DO Rev.B technology will enhance the existing speeds of mobile broadband services that are available on SSTL.
SSTL is a joint venture between Sistema of Russia, the Russian Federation and the Shyam Group of India. Sistema is the majority stake holder with 56.68 per cent, followed by the Shyam Group of India having 23.98 per cent. The Russian Federation holds 17.14 per cent in SSTL. “Upgrading from EV-DO Rev 1(the existing technology) to Revision 2 (trial runs for which will start by September) will ensure higher speeds on the CDMA platform. The speed available on the CDMA platforms will be much higher than what is being offered by 3G GSM operators,” Mr Vsevolod Rozanov, President and CEO, Sistema Shyam TeleServices Ltd, said.
Currently, CDMA players use the EV-DO Rev 1 technology for providing data downloading services. ZTE has also won the CDMA expansion contracts and EV-DO upgrade contracts for 10 circles of SSTL.
IPO option
Mr Rozanov added that the company was awaiting the National Telecom policy to be unveiled by the Telecom Minister, Mr Kapil Sibal, in October, before deciding on a fund raising plan that includes an initial public offering (IPO).
“We are waiting for National Telecom Policy following which we will take a call on the IPO. There are various options before us and IPO is just one of them. Work and investment will not stop if IPO does not come soon as there are alternate means of financing,” he said. The company had deferred its IPO launch in June following the 2G probe and was awaiting clarity on spectrum allocation.
Break Even
MTS is planning to break even by end 2013 with non-voice data accounting for nearly 30 per cent of the company's revenues. According to its first quarter ended March 31, 2011, the company reported a 22 per cent rise in consolidated revenues – to Rs 236.2 crore - on a quarter to quarter basis. The company follows the calendar year for accounting purposes.
“Mobile average revenue per user for the quarter remained at Rs 82 and we hope to break even by end 2013,” he said.