Sistema Shyam Teleservices (SSTL), a Joint Venture between Russias Sistema and the Shyam Group, is planning to continue its expansion plan mid-2010, including launches in the high-stakes Mumbai and Delhi circles by December.
The telecom company is set to acquire a 10% market share in the Indian mobile territory in the next five years. Unaffected by the slowdown, the company is committed to its 22-circle expansion plan.
SSTLs president & CEO Vsevolod Rozanov indicated this at the companys high profile launch of CMDA mobile services in Kolkata on Thursday. He stated, "SSTL is targeting around 35-40 million subscribers in five years. We plan to start services in 2-to-3 new circles every quarter. Next in line are the circles of West Bengal, Bihar/Jharkhand. Number portability will also drive growth for us."
At present, SSTL operates CDMA mobile services in Rajasthan, Tamil Nadu and Kerala. It offers CDMA mobile services under the MTS brand with around five lakh subscribers.
SSTL believes entry into the super-competitive Mumbai and Delhi circles will help it also grow its non-voice revenue. Mr. Rozanov said, "We are looking at VAS and data services as future revenue streams and we expect Mumbai and Delhi will provide such opportunities."
SSTL is planning to expand the number of its BTS sites from the present 4,000 to 20,000 by next year on the network front. Mr. Rozanov added, "We have already invested $1.2 billion and are committed to our declared $5.5-billion investment plan over the next 3-5 years. The meltdown has not changed our plans."
SSTL will assess possibilities for an IPO next year. The Russian governments proposed investment in the company has also progressed. Sistema senior vice president Sergey Cheremin said, "The Russian government has announced a budgetary allocation of $670 million to acquire around 20% stake in SSTL. The deal is likely to be completed in the next two months. But Sistema will continue to enjoy a majority shareholding in SSTL."
At present, the company has 1,500 people on its rolls and plans to take its headcount to 8,000 people as it expands across the nation. The company will currently focus only on CDMA although SSTL has a GSM licence as it feels this technology can provide cost competitive service in the Indian market.
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