Prior to RCom merger, MTS India closes its online store

By July 14th, 2016 AT 7:15 AM

Ahead of its planned merger with RCOM, MTS India has closed its online store. As per the update on its website, starting 1st July 2016 online store for buying new MTS devices along with taking new connection will be permanently shut down.

The following message appears online:

We’re sorry to inform you that as of 1st July’2016, was shut down permanently.
We sincerely apologize for any inconvenience this may have caused.
Team MTS India

MTS online store was launched back in 2013 and offered MTS devices like dongles and CDMA phones. The site offered the online shopping experience for taking new MTS connection at the convenience from home or office. Similarly, TATA Docomo and RCOM continue to offer online shopping site for taking the new connection. The shutdown of web store indicates that MTS has stopped selling new connection through the online channel.


Meanwhile, to recap, the MTS-RCom merger was first announced in November 2015 and received a nod from Sistema’s shareholders in March 2016. The deal is valued at around $690 million (approx. Rs 4,500 crore). Under the deal, MTS would hold 10% equity stake in Reliance Communications. Also, the new entity will acquire 9 million of MTS’ customers and 800/850 MHz band spectrum.

“RCom will acquire SSTL’s most valuable and superior 800/850 MHz band spectrum, ideally suited for 4G LTE services, to complement its own unique nationwide footprint of minimum 5 MHz contiguous 800/850 MHz spectrum aggregating 148.75 MHz,” a company statement released said.

Also, the validity of RCom’s spectrum in 800/850 MHz band in 8 important circles will be extended by 12 years from 2021 to 2033. While Sistema Shyam Teleservices Ltd (SSTL) will pay off its existing debt, RCom will assume the liability to pay the government installments for SSTL’s spectrum, amounting to Rs. 392 crore per annum for the next 10 years.

The shutdown of web store indicate that MTS has stopped selling new connection through online channel. Earlier, Sistema Shyam Teleservices, which operates under MTS India brand, received a nod from its shareholders for its planned merger with Anil Ambani-owned Reliance Communications (RCom). Following RCOM’s shutdown of its CDMA network, MTS CDMA network would be shut down post merger with RCOM as the new entity is likely to focus on 4G offering.

Update: As of July 23rd MTS has now updated its website saying “This is to inform you that as of 1st July’2016, is undergoing renovation.

We sincerely apologize for any inconvenience this may have caused. ”

Team MTS India

Inputs: Jigar Patel

An IT professional who has got great passion for telecom. Has been closely watching Indian telecom space since 2009.

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