Sistema Shyam TeleServices Ltd has posted a net loss of Rs 1,180 crore in its second quarter ended June 30, impacted mainly by depreciation of the rupee against the dollar.
The company, which provides CDMA services under the MTS brand, had posted a net loss of Rs 657 crore in the same period a year ago.
SSTL’s revenues grew 50 per cent to Rs 417 crore during the quarter, compared with Rs 278 crore in second quarter last year.
The company’s non-voice revenues rose by 3.9 per cent quarter on quarter to Rs 148.4 crore, contributing 35 per cent to the total revenues of the company.
The company’s average revenue per user (ARPU) declined by 2.3 per cent Rs 83. SSTL’s average minutes of usage per customer has also gone down to 281 minutes.
“Our data card subscriber base continues to grow in double digits despite recent tariff reduction by 3G operators,” Rozanov added. SSTL was among those whose licenses were cancelled by the Supreme Court in February. The company, whose licenses are valid till January 18, 2013. “There is zero visibility of roadmap going forward post the auctions. In some circles like Andhra Pradesh, there is no spectrum available. Even for liberalised spectrum, 5 MHz continous spectrum is required,” SSTL CEO Vsevolod Rozanov said.

jaswanth roy September 14, 2012 at 9:57 pm
@Saurabh
Thanks for your confirmation. Uninor has at least had the courtesy to declare its intention where it would continue and where not and advised its customers to port out. But these two Videocon and MTS without any notification, they are slowly scaling down their operations, ringing alarm bell on unsuspecting customers. I have already stopped using Videocon and it is the right time, I should move away from MTS also, with regards.
Saurabh September 14, 2012 at 1:38 pm
@ jaswanth roy
You’re right. There is again buzz in the market regarding Sistema-Aircel deal. If Sistema is keen to buy controlling stake (74%) in Aircel which is currently held by Maxis Communication of Malaysia they will have Pan-India GSM presence. But it further makes one thing clear that Sistema will not participate in the auction for CDMA spectrum.
The news in the market suggests the deal could be valued at USD 3bn or Rs.16500 crores taking $1 = Rs.55. Currently Aircel has 66 million customers and their expansion plans are not progressing due to fund problems.
Maxis Comm has been looking for potential buyers from long time and now if Sistema is ready to buy their 74 percent stake in Aircel, it will be the second biggest takeover in Indian Telecom sector after Vodafone’s acquisition of Hutch India.
But the question is, to whom they will sell the CDMA infrastructure in case no one bids for CDMA spectrum.
Now the chances of spectrum auction becoming a big failure are getting higher and higher.
If Sistema successfully acquires Aircel’s controlling stake from Maxis, I would call it a wise move and will benefit the company as Aircel hasn’t lost any licenses and have 3G license for 13 circles.
But the biggest question is how they justify the exit from CDMA space and loss they bear to their shareholders? Let’s see, what is to come in future.
I hope this time Income Tax Department don’t make the same mistake they made during Vodafone-Hutch deal.
jaswanth roy September 14, 2012 at 10:52 am
Breaking news is that MTS on negotiations with GSM Aircel promoters to acquire its business entirely on an estimated value of $ 6 billion, also it has scaled down down its CDMA operations on few circles according to some reports. That means , MTS has solid financial backing to invest heavily on Indian operations, it might stay in India not concerned about the heavy investments or financial implications , it may continue its CDMA operations in certain circles and might move entirely to GSM platform on pan India basis. Thus, MTS will stay and probably will consolidate the tariffs from steep hike as envisaged by the big cartel trio (Airtel, Vodafone and Idea). For that we have to wait a couple of months before its final decision is made public.
jaswanth roy September 14, 2012 at 7:57 am
Latest update on MTS, it is on talks with promoters to acquire GSM Aircel for an estimated amount of $ 6 billion to move to GSM service. It also scales down its CDMA serices in certain circles according to some reports. So, looks like MTS is serious about staying in Indian operations and also capable of heavy investments. But now whether it will be CDMA or GSM platform. We have to wait for a couple of months for the final outcome.
Dinesh September 13, 2012 at 12:04 am
Do not recharge with Airtel Rs 126. This is fake. It gives 2G speed only. I live in Delhi/NCR and i am getting only 2G speed with this recharge. Similar complaints are coming from other states too. Even the customer care guys came to know about this recharge from me only. So beware of loosing Rs 126
Anirban Das September 12, 2012 at 9:50 pm
MTS’s new promo: recharge with Rs. 27 and get all local calls 25p/min for 90 days. “sabse sarta challange” to Uninor !!!!!!!
Bit Cracker September 12, 2012 at 10:17 am
Dosto, Airtel ne 3g plan shuru kiya hai. 125 rupaye mein 3600 minute 30 days k liye. Maine parso hi ye plan activate karwaya. Aap bhi karwaye aur maje le 3g k- maine sms se shuru karwaya matlab 3g sms kiya 121 pe.
ANIRBAN DAS September 12, 2012 at 12:13 am
Mts is really a good and value for money service provider with their great network along with cheap call rate,using mts since 3years and am really a very satisfied customer.
Ashish September 11, 2012 at 11:37 pm
I live in south delhi and I use mts and airtel, both are awesome. the 30p pack by Mrs is really great. no issues faced so far. even in metro Mts works great.
Jaswanth roy September 11, 2012 at 11:03 pm
@Saurabh
What you think of the possible scenario for impending spectrum re-auction on the stakes with MTS continuation of service in Chennai & ROTN, as I also use MTS connection for (enjoying currently???) lifetime validity benefit for the lowest local call rate to any network (@29p/mnt) as well for the lifetime benefit of on net 150 mnts/day free calls (now reduced to 100mnts/day) benefit, (all other service providers except Tata Docomo, have reverted to current hiked tariffs even though I had got the connections on life time validity basis and continued to fulfill recharge conditions of the respective service providers) also use Mblaze as I am more comfortable with CDMA than GSM internet on connectivity issues across many places I move. In Tamilnadu currently for inr 37/month, it offers 1, 20, 000 on net seconds, for inr 51/month 10,000 seconds to any network, for inr73/90days validity it offers 30p/mnt local/std/ roaming ic/og/std to any network, sms local/std to any network, 1mbdata/30p, 30p/mnt ISD to select few countries and there is no faulty deductions, with these unbeatable offers and with strong network I wish MTS should stay here.
georgian September 11, 2012 at 9:57 pm
MTS is a good service, it must be our unjustified telecom policies of licence which hase come up and spoilt the business of these people.
Saurabh September 11, 2012 at 8:49 pm
Breaking News: Airtel has introduced new 3G plan on Pan-India basis except Orrisa circle. The plan cost is Rs.123/124/125 in different circles and allows 3600 minutes of 3G usage with speed upto 7.2Mbps with 30 days validity.
You read it right. It gives 60 hours of 3G data usage.
3G tariff war is really heating up. In Haryana, we get consistent 6.4-7.2Mbps on Airtel using Idea network and in 3600 mins if one only downloads, he or she can use 160GB or atleast 150GB
In Haryana, the plan is available for Rs.124. To activate you can SMS 3G to 121 and then select from the list of plans or visit My account section on Airtel page and login to your account and then can activate.
I hope Idea will come up with such plan. Until then I will use this plan. Recharge my number tomorrow.
jitender kumar September 11, 2012 at 8:15 pm
MTS delhi rocks..no wrong deduction…cheaper plan and rate cutter…MTS rocks……
amit krishna September 11, 2012 at 5:10 pm
very satisfied service. No wrong deduction like Reliance CDMA Services.
Anirban Das September 11, 2012 at 4:00 pm
@ Ganesh
I dont know , what is your prob? But, in W.B. and Kolkata circle , its service is awesome. No wrong balance deduction from last 3 years of my use.
pradeep 9136725303 September 11, 2012 at 2:01 pm
MTS is trully Most Troublesome Service. there is no network in central DELHI area of chander nagar tri nagar since 18/08/2012. no one in the company listen. many complaints made . nothing happend. THE LOSS TO THE COMPANY TRULY JUSTIFIED
Ganesh September 11, 2012 at 12:41 pm
For cheating companies like MTS, the loss is justified. What you sow is what you reap. So you cheat customers, you get huge loss!
Amit Kumar September 11, 2012 at 12:13 pm
If the depreciating rupees is the main reason for the loss of the telecom company then they must be preapared for the worse as in the run up to 2014 election, rupee might depreciate further.