Sistema Shyam TeleServices Ltd, which provides telecom services under the brand name MTS, has become the first company to receive the new unified telecom licence.
The unified licence will enable the company to offer services using any technology for 20 years.
Under the earlier licence, Sistema Shyam was restricted to offering only CDMA-based mobile service in the 800 MHz band.
While the spectrum band remains the same, the company can even offer 4G services under the new licence enabling it to compete with the likes of Airtel and Reliance Jio.
However, it will need additional spectrum to offer 4G services.
Sistema Shyam currently has only 3.75 MHz of spectrum. It will need at least 5 Mhz to offer 4G.
Dmitry Shukov, Chief Executive Officer, SSTL, said that the new licence regime would bring clarity in the operating environment for the company.
“We are now looking forward to the allotment of the third carrier of spectrum that we had won in the March 2013 auctions,” he said.
Sistema has been given 2.5 MHz spectrum although it won 3.75 MHz.
SSTL has been granted licence to provide telecom services in eight circles – Delhi, Gujarat, Karnataka, Kerala, Kolkata, Tamil Nadu, UP (West) and West Bengal.
In addition to these eight telecom circles, SSTL’s footprint also includes Rajasthan circle. All telecom companies are required to migrate to the new unified licence.