Telecom Tribunal Ruling to Pave Way for RCom-MTS Merger?

In what comes as a relief for Sistema Shyam Teleservices (MTS), the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has reportedly ruled out the telecom department’s demand for bank guarantees worth Rs 236 crore from the CDMA telco for spectrum in the 800 MHz band that had been transferred to Anil Ambani-led Reliance Communications (RCom).

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According to an Economic Times report, the telecom tribunal has now ruled that the DoT need not ask for bank guarantees of Rs 142 crore for licence fees and Rs 94 crore for spectrum usage charges from MTS India. The move will now pave way for MTS India’s merger into Reliance Communications.

Notably, the telecom department had also demanded another Rs 926 crore as a guarantee from MTS India for other spectrum charges. The tribunal has now told the department “to set off this demand against an existing bank guarantee of Rs 922 crore and calculate the remainder, which MTS India would need to pay.”

The report said that the telecom department has now been given a month to come back with its estimates.

The tribunal had struck down a Rs. 3,500 crore spectrum contiguity levy imposed by DoT on SSTL in March this year.

The all-stock acquisition was announced in November 2015 and is valued at around Rs 4,500 crore, which will create an operator with over 110 million subscribers. Both the companies have so far received approvals from various courts.

As per the deal, SSTL will hold about 10 per cent stake in RCom and pay off its existing debt before closing the deal.

The deal will give RCom access to spectrum or airwaves in the 850 Mhz band that can be used for 4G services which it plans to start by the year-end. The acquisition will allow RCom to extend the validity of its licence by 12 years in eight high revenue-generating — Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP (West) and West Bengal.

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SSTL, which operates under the MTS India brand, is currently offering voice and data services across nine telecom circles in the country.

AFK Sistema currently holds 56.68 per cent stake in SSTL, while the Russian government owns 17.14 percent interest. Shyam Group has 23.98 percent stake and the rest is owned by small investors.

RCom is also in the process of merging its wireless operations with Aircel to create a new merged entity.

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14 Comments on "Telecom Tribunal Ruling to Pave Way for RCom-MTS Merger?"

 

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anupam
May 20, 2017 11:19 am 11:19 AM

there is still 2 CDMA operator in india( MTS,TATA). CDMA have better speed less network congestion ,less radiation ,better coverage, less battery use

why reliance is hell bend in closing it ?

JIO 4G have pathetic speed in congested city and eats up battery

chaitanya
May 20, 2017 1:21 am 1:21 AM

Still now for last 9years, Mts is the best for for calling, even data. On smart phone MTS is superb speed with reasonable price. I am now using GIONEE F103 PRO, the best mobile interms of CDMA/4G VOLTE. In any port simultaneously use both sim without any network issue.I have tested with JIO and Airtel 4G works good. Even with JIO 4G volte service MTS sim shows and used EvDO with good speed. It has the best camera in sub 10k handset. My son plays all big games without any hardware lagging. But only one problem is the battery.

Sanjit Roy, Thakurnagar, wb
May 21, 2017 11:30 am 11:30 AM
It’s not that mts is a cdma operator so quality is good, don’t forget rcom was too, but rcom’s cdma network coverage was very fluctuating and sometimes very weak, now if you face any coverage related issues on mts just raise a complaint later a call back will come explain your concern and then a RF team will visit to fix it. Let me tell you mts, vodafone and telenor all are European operators and they are driven by strong management not just like lazy corporates, you should not forget if top of the department are lazy incompetent peoples then… Read more »
aaa
May 20, 2017 9:11 am 9:11 AM

now u r using mts as primary sim ??

Aslam(Rajasthan
May 19, 2017 11:37 pm 11:37 PM

I ported my family’s MTS numbers into Idea in Rajasthan

Arunkrishna
May 21, 2017 4:16 am 4:16 AM

I too because of their worst service in tamilnadu. They are shutting down many towers without informing customers of that particular area.

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