Telecom Mess: SSTL Registers Net Loss 1,180 Crore, Revenue Up by 50%

MTS India ARPU 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.

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18 Comments on "Telecom Mess: SSTL Registers Net Loss 1,180 Crore, Revenue Up by 50%"

 

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jaswanth roy
September 14, 2012 9:57 pm 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 1:38 pm 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… Read more »
jaswanth roy
September 14, 2012 10:52 am 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… Read more »
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