Russia's MTS Launches a CDMA Network in India

Russian backed Indian mobile network operator, Sistema Shyam Teleservices (SSTL) has launched its CDMA network Tamil Nadu, Chennai and Pondicherry, under the MTS brand. The company outlined plans for a US$5 billion investment over the next five years, and expects to list on the local stock-exchange by the end of next year.

The firm is controlled by Russia's Sistema, which has built up a 73 percent stake in the Indian operator. Sistema also controls the Russian and CIS operator, MTS and licensed the brand to be used in India last year.

Speaking at the launch, Mr. Srinirao Saripalli, Chief Operating Officer, Sistema Shyam TeleServices said "We are proud to announce our national foray through Tamil Nadu market, which has one of the highest tele-density in the country. The MTS brand will provide our subscribers with superior value offerings and unmatched quality of service."

The launch marks the entry of MTS services across all major towns in the 31 districts of Tamil Nadu including Chennai. Further, MTS will quickly expand presence to over 580 cities in the next two months, penetrating about 50 to 60% of the population.

The firm is expected to be able to launch in 2-3 additional circles per quarter until they achieve national coverage around the middle of next year. The existing services of SSTL in Rajasthan under the brand ‘Rainbow' will also be rebranded to MTS shortly.

Shyam Telelink aims to secure 35 million subscribers by 2012, which represents approximately 7% of the Indian market. Altogether Shyam Telelink now has spectrum in 22 Indian circles, covering 28 administrative states and 7 union territories with a population of approximately 1.1 billion people.

There have been rumours in local media that the Russian government is seeking to take a 20 percent stake in the mobile network as part of a plan to settle New Delhi's outstanding Soviet-era debt to Moscow.

Posted to the site on 28th March 2009