Russia to Go International Arbitration if MTS India’s Licenses Are Not Restored

License issue of Sistema Shyam Teleservices has taken to international level, as Russia warned to go for international arbitration in case Indian courts do not resolve Sistema’s licenses. Alexander Kadakin, Russian Ambassador in a cultural event in New Delhi said, “If the issue of cancellation of 2G licence to Sistema is not resolved in Indian courts, we will go for international arbitration,”

MTS India

The Supreme Court of India cancelled all licenses issued on or after January 10, 2008 on the ground of irregularities during spectrum sale. This verdict affected 21 of 22 licenses of SSTL (Sistema Shyam Teleservices), which operates under MTS India brand. The company has submitted a petition with the apex court seeking a review of the decision to cancel licences and also decided not to participate in the upcoming 2G spectrum auction. Sistema’s point of view is they applied for CDMA spectrum on 800 MHz band where there is no demand, while other players went for GSM 1800 MHz band.

Till date Sistema, who owns 56.68% of the company, invested $3.1 billion in this Indian telecom venture. Russia previously asserted it will not allow this huge investment go waster for internal problems in the country. Russia Govt. holds 17.14% shares in SSTL and is very unhappy on this issue, said that “great repercussion” of this issue will affect not only on Indo-Russian bilateral cooperation but also for its foreign investments in India.

There are also reports that the Department of Telecom (DoT) is going to support the curative petition filed by Sistema in the Supreme Court challenging cancellation of its licenses in 21 circles.

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52 Comments on "Russia to Go International Arbitration if MTS India’s Licenses Are Not Restored"


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January 4, 2013 9:27 am 9:27 AM

Hello All,

I know for the fact that MTS do not want to do business. I put up sales lead on the website for my personal connection and did not got call or response on email for more than 48 hours. Then I did the same thing or AIRTEL and by evening I was Up and Running. Thats how Russians treats Indians.

Kick out MTS.

December 21, 2012 11:03 am 11:03 AM

i am using mts. it gives best value plans both for data and voice with very good efficiency.
their points are true no one is interested in getting cdma spectrum. they are suffering from falsy govt. process. their spectrum should be reissued.

December 10, 2012 3:39 pm 3:39 PM

It is seems to be like- Foreign investments will become a serious threat to the NATIONAL SECURITY similar to terrorism. In future investors may start to bargain for their greedy requirements in the international diplomatic level. May be in future, Indian government should compromise indefinitely with the NATIONAL SECURITY, PRESTIGE AND ECONOMY for the improper decisions taken in the foreign investments policies.
An example: Ferrari threatened India by raising their Italian navy flag on their cars at the Indian Formula One Grand Prix in a gesture of support for two Italian sailors charged with killing Indian fishermen.