MTS, Tata DOCOMO launch special offers for World Cup

With the upcoming Cricket World Cup, telecom companies are coming up with new offers to attract customers and get more business in the season.

MTS has announced that it is offering free local and national SMS for its subscribers on every run that will be scored by the Indian cricket team.

If a player hits a ball for six runs, then a MTS subscriber will get 6 SMS free. This offer will be provided to those MTS customers who opt for recharge voucher (RCV) of US$5.57 from the company. This RCV will give a talk time of US$6.64 to MTS customer. These free SMSs can be sent by customers to any local or national number in India.

According to Leonid Musatov, Chief Marketing Officer, Sistema Shyam Teleservices, these initiatives have been specially designed to add to the cheer of their customers every time India wins a match in this world cup.

Tata DOCOMO has introduced two new RCVs in the name of ‘not-out’ for S$1.26 and $2.27, respectively. Both RCVs offer talk-time worth US$0.61 and US$1.12, respectively, which can be used to make voice calls and are valid for 30 days.

According to Rishi Mohan Malhotra, Head, Value-Added Services, Tata DOCOMO, when you think of cricket, it’s all about fun, passion, excitement, celebration and winning and 57 and 103 Not Out are precisely that.

By using these RCVs, subscribers will be able to dial 54321194 and listen to 5 minutes or 10 minutes of cricket updates on every match day.

The other bundles offers with these RCV are one-month free subscription to an IVR-based voice game called Guess Master. The game is about guessing the winner of the day’s toss, the match-winner, scores made in each innings and 6s and 4s scored in each innings.

Subscribers can bid points on each guess and every correct answer will increase their chance to double their points. Post the World Cup, subscribers can redeem their total points for various gifts like Team India Jerseys, Shoes, I-Pods and LCD TVs.

RCVs also offer subscribers free subscription to the My Song service, wherein they can listen to live scores each time they call someone from their Tata DOCOMO number. Match scores will be played on match days whereas, on non-match days, subscribers’ chosen music will be played.

Additionally, subscribers who opt for 103 Not out Recharge Voucher will get free subscription to Call Me Tunes. This will enable him to listen to live score updates instead of ring tones.

Data service subscribers of Tata DOCOMO can download cricket games, wallpapers and animations related to cricket for free via Dive In.

Supreme Court issues notice to eleven telecos (India)

India’s Supreme Court has issued notices to the Central Government and 11 private telecoms operators on a petition which seeks to cancel those 2G spectrum licences it claims were handed to companies either ineligible for such concessions or those that failed to fulfill launch obligations.

According to reports, the court has given all respondents three weeks to respond in the matter, after the issue was raised by an independent body, the Centre for Public Interest Litigation. It is understood that the court has also called for a response as to why the Telecom Regulatory Authority of India (TRAI) has remained silent regarding allegations of delays by cellcos in meeting their launch obligations, with it adding the regulator as a respondent in the case.

The eleven companies named in the case are: Loop Telecom, Etisalat DB (Swan Telecom), Vodafone Essar, STel, Unitech Wireless (Uninor), Videocon Telecommunications, Idea Cellular (including Spice), Allianz Infratech, Tata Teleservices, Sistema Shyam Teleservices and Dishnet Wireless (a unit of Aircel).

Bharti Airtel gives highest tele revenue to government in Q2 (India)

Bharti Airtel has paid the highest amount of over US$ 210.35 million to the government in terms of license fee and spectrum usage charge for the quarter ended September 30.

According to the data compiled by telecom regulator TRAI, Bharti paid US$150.18 million as license fee and US$60.18 million as the spectrum charge for the quarter.

While, new players like Etisalat, Unitech Wireless, Loop STel and Sistema Shyam Teleservices, who got the radio waves spectrum in 2008, paid US$ 10.72 million as the spectrum charge and license fee to the government.

Bharti was followed by Vodafone Essar, which has paid a combined amount of US$130.72 million for the quarter. Besides, the two state-run firms BSNL and MTNL have paid US$120.87 million for the same.

Sistema Shyam (MTS) to invest USD 55 Mn

Sistema Shyam TeleServices Limited (SSTL), a joint venture company between Russia’s Sistema and Shyam Group of India, will be investing USD 55 Mn to expand its code division multiple access (CDMA) network in one of the southern states in India (Andhra Pradesh) by the end of this year.

MTS India has successfully launched in 12 circles now and MTS India CEO, Vsevolod Rozanov,  said the plan for this year was to complete all the 22 circles with an investment of over USD 1.1 Bn.

Currently, MTS India has 4.5 million subscribers, including 72,000 for high-speed data services. Data is the future of our company and is clearly a differential business model than other aggregators. We expect data services to account for one-third of our revenues and achieve break-even by 2013,” Rozanov told Business Standard in India.

Replying to a query, Rozanov said the company would switch to another vendor if China-based Huawei Technologies’ products were not allowed into India.

It may be recalled that the Indian government has blocked Huawei Technologies and ZTE Corporation from selling telecom network equipment to domestic phone carriers due to security reasons.

MTS India to focus on data services

www.WirelessFederation.com/news: Sistema Shyam TeleServices Ltd. selling its services using the MTS India brand has decided to focus its attentions on data services growth in 2010 because of a crowded voice services market and plummeting average revenues per user (ARPUs). According to MTS India’s CIO, Rajeev Batra, voice ARPUs are dipping very significantly, so it makes sense to focus on data and the company’s ARPU for data services is between 500 and 600 Rupees [US$11.10 and $13.31].

The service of the CDMA operator was launched in November 2009, and by the end of January this year about 10,000 of its 3.2 million customers was using mobile data applications. The telco operates in 11 of India’s circles (service areas). The company has decided not to participate in the 3G auction but has decided to conduct an IPO later this year.

Instead of focusing on 3G, the company is working on 2G investments and making best use of its existing spectrum. The data services strategy of the operator includes targeting enterprise customers and the youth market with a special focus on the youngsters.

SSTL targets profitability within three years (India)

www.WirelessFederation.com/news: Profitability is seeked to be achieved by Indian mobile network operator Sistema Shyam Teleservices (SSTL) within three years. SSTL is a joint venture between Russian mobile giant Sistema and India’s Shyam Telecom.

According to Vsevolod Rosanov, president and CEO of SSTL, the company is hoping to become earnings before interest, depreciation, tax and amortization (EBIDTA) positive by 2012-end or early 2013.

n March 2008, a pan- India license was acquired by SSTL and the telco is expecting to launch its commercial services in all 22 of the country’s telecom circles by the end of this year. While no subscriber targets has yet been announced by SSTL, it has been noted that to reach profitability the company would need to have approximately 30 million customers.

Until end-December 2009, SSTL had signed up 3.09 million subscribers.

Russian telco MTS eyes Indian telecom market

www.WirelessFederation.com/news: India’s hunger for real-time information and infotainment has attracted the attention of Russian telco MTS which is shifting from mobile voice to mobile data services. It has been expected by the company that the markets will expand beyond just corporate users for data to include small to medium enterprises (SMEs), students and small households.

MTS biggest rivals in India are the companies like Reliance, Bharti Airtel, Vodafone and Tata Docomo providing postpaid services to its customers. According to Vsevolod Rozanov, president and CEO of Sistema Shyam Teleservices, it difficult to win existing customers of other operators but the company would fight the battle for new customers.

IPO proposals approved by SSTL

www.WirelessFederation.com/news: Sistema Shyam TeleServices (SSTL), an Indian mobile network operator under MTS India banner, has been given an in-principle approval to launch an initial public offering (IPO) by its board.

According to Vsevolod Rozanov, president and CEO of SSTL, the proceedings to list the company on the local bourses have been initiated and the company will now have to work out the details of the IPO such as the amount of stake to be divested amongst other issues. Even after getting the permission of the board, the listing will happen depending on the market conditions and the market does not look right for an IPO.

74% of the telco is owned by Russian services conglomerate Sistema and it was revealed in September 2009 that the Russian government was preparing to acquire a 20% stake in the cellco from Sistema for approximately USD680 million.

Russian Government to buy stake in Indian Mobile Operator

Russian Government is said to have budgeted $680-$780 million to acquire a 20% stake in Indian Mobile operatorSistema Shyam TeleServices. Russia’s Sistema owns 73.71 percent in the company and India’s Shyam Group holds 23.79 percent.

Russian Finance Minister Alexei Kudrin said that they were in the process of completing the appraisal to acquire the stake. It would be paid through Indian Rupee deposits that the russian government now holds.

According to sources, Avers, a St. Petersburg-based consultancy commissioned by Russia’ Federal Property Agency is said to have valued the company at around $3.4 Bn.

Sistema Shyam TeleServices operates in 6 of India’s 22 telecom circles (zones) and has licences for the remaining 16.

Shyam Telelink renamed Sistema Shyam TeleServices (Russia, India)

Sistema, the largest diversified public corporation in Russia and the CIS, which manages fast growing companies operating in the telecommunications, consumer services sectors and technology industries, announced that Shyam Telelink Ltd., a subsidiary of Sistema, was renamed Sistema Shyam TeleServices Ltd. (Sistema Shyam TeleServices” or Shyam”), following the decision made at the EGM of Shareholders of Shyam.

Vsevolod Rozanov, President and Chief Executive Officer of Sistema Shyam TeleServices, commented: Renaming of Shyam Telelink is a logical step in the development of our Indian operator. As previously announced, Shyam will be offering its services under the MTS brand from February 2009. Furthermore, Sitronics has supplied radio relay equipment to Shyam in the state of Rajasthan. These efforts clearly position Sistema Shyam TeleServices as an integral part of the Sistema Group, which is now reflected in its name.”

Vitaly Savelyev, First Vice President of Sistema, Head of Telecommunications Assets” operating unit, Chairman of Sistema Shyam TeleServices, commented: We intend to further develop Sistema Shyam TeleServices and to launch its mobile network in two additional Indian circles in the near future.”

Shyam opened its new head office with a staff of 120 in Gurgaon, a satellite city near Delhi. Sistema Shyam TeleServices now has spectrum in 22 Indian circles, covering 28 administrative states and 7 union territories with a population of approximately 1.1 billion people. Sistema Shyam TeleServices launched a CDMA 800 MHz mobile network in the state of Rajasthan at the end of September 2008. The Sistema Shyam TeleServices’ subscriber base has exceeded 500,000 users, including nearly 300,000 mobile subscribers, as at January 26, 2009.

About Sistema

Sistema is the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the telecommunications, consumer services sectors and technology industries and has over 100 million customers. Sistema develops and manages market-leading businesses in selected industries, including telecommunications, technology, banking, real estate, retail, media, tourism and healthcare. Founded in 1993, the company reported revenues of US$ 12.6 billion for the first nine months of 2008 (unaudited), and total assets of US$ 32.0 billion as at September 30, 2008 (unaudited). Sistema’s shares are listed under the symbol SSA” on the London Stock Exchange, under the symbol AFKS” on the Russian Trading System (RTS), under the symbol AFKC” on the Moscow Interbank Currency Exchange (MICEX), and under the symbol SIST” on the Moscow Stock Exchange (MSE).

Sistema Shyam TeleServices Limited (SSTL) was founded in 1998 and started its operations in the state of Rajasthan in 2000. Presently SSTL has more than 500,000 fixed-line and mobile subscribers in the state of Rajasthan and continues to further expand its network and develop its service offering. SSTL obtained a unified pan-Indian license to provide cellular services in March 2008 and now has spectrum in 22 Indian circles. SSTL is a joint venture between Sistema and the Shyam Group of India. Sistema Shyam TeleServices is majority-owned by Sistema (73.7%).

For further information, please visit www.sistema.com