Sistema prefers bandwidth sharing, seeks clarity on rules
NEW DELHI: Sistema Shyam TeleServices (SSTL) is keen on sharing spectrum with other carriers as the most preferred route to improve bandwidth access, even as it awaits clarity on rules for spectrum trading and sharing as well as auction of the 800 Mhz band.
"It's a better idea and logical for us to increase our spectrum holding through sharing," chief executive Dmitry Shukov said. "We are open to an M&A, but given the current lack of clarity, there won't be any movement on it, despite the fact that the industry is in desperate need for consolidation, with 12 players in some circles, as against the desired five, six or seven."
Shukov was speaking after releasing its quarterly financial data. For the April-June period, the Indian business arm of the oil-to-telecom Russian conglomerate Sistema posted a loss of Rs 402.5 crore, or less than half of the year earlier period's Rs 844.7 crore.
The company that operates in nine circles across the country, aims to offer high-speed internet services based on fourth-generation communication technology in the long term, for which clear spectrum sharing or trading rules will be useful.
In the short term, it is seeking contiguous spectrum in the 800 Mhz band, for which auctions have not been held so far.
Sistems Shyam expects its revenue to expand in the coming quarters. It will soon launch MTS Movies, its own online movie service. While the movies would come free, the operator said the service would drive data consumption on its network.
Shukov said higher data usage pushed the company's average mobile voice and data revenue per user up 7.7% to Rs 115 in the past quarter, while non-voice revenue grew 14% to Rs 129.1 crore. It had 9.2 million subscribers at the end of June, including 1.4 million for data-card services.
"Non-voice revenue contributed 38.6% of the total quarterly revenues," Shukov added.
He said cost optimisation, strict control on marketing expenses and other expenditures and better operational efficiencies helped the firm narrow its operating loss before depreciation and amortisation Rs 136.5 crore from to Rs 219.3 crore a year ago. It expects to turn an income on the same basis by the end of 2015.
NEW DELHI: Sistema Shyam TeleServices (SSTL) is keen on sharing spectrum with other carriers as the most preferred route to improve bandwidth access, even as it awaits clarity on rules for spectrum trading and sharing as well as auction of the 800 Mhz band.
"It's a better idea and logical for us to increase our spectrum holding through sharing," chief executive Dmitry Shukov said. "We are open to an M&A, but given the current lack of clarity, there won't be any movement on it, despite the fact that the industry is in desperate need for consolidation, with 12 players in some circles, as against the desired five, six or seven."
Shukov was speaking after releasing its quarterly financial data. For the April-June period, the Indian business arm of the oil-to-telecom Russian conglomerate Sistema posted a loss of Rs 402.5 crore, or less than half of the year earlier period's Rs 844.7 crore.
The company that operates in nine circles across the country, aims to offer high-speed internet services based on fourth-generation communication technology in the long term, for which clear spectrum sharing or trading rules will be useful.
In the short term, it is seeking contiguous spectrum in the 800 Mhz band, for which auctions have not been held so far.
Sistems Shyam expects its revenue to expand in the coming quarters. It will soon launch MTS Movies, its own online movie service. While the movies would come free, the operator said the service would drive data consumption on its network.
Shukov said higher data usage pushed the company's average mobile voice and data revenue per user up 7.7% to Rs 115 in the past quarter, while non-voice revenue grew 14% to Rs 129.1 crore. It had 9.2 million subscribers at the end of June, including 1.4 million for data-card services.
"Non-voice revenue contributed 38.6% of the total quarterly revenues," Shukov added.
He said cost optimisation, strict control on marketing expenses and other expenditures and better operational efficiencies helped the firm narrow its operating loss before depreciation and amortisation Rs 136.5 crore from to Rs 219.3 crore a year ago. It expects to turn an income on the same basis by the end of 2015.
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