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MTS Sole Bidder for Indian 800Mhz Spectrum Auction
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India's Sistema Shyam TeleServices Ltd. (SSTL) was the sole bidder in the country's auction of 800Mhz spectrum, and says that it won spectrum in eight circles.
The mobile network, which operates under the MTS India brandname secured licenses in Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) & West Bengal.
The Company's operational footprint to also include Rajasthan circle which was not affected by last year's Supreme Court action to cancel mobile licenses.
The company howver decided not to bid for Mumbai, Maharashtra and UP East circles and would be immediately initiating the process to close down its networks and encourage its remaining customers there to migrate to a different provider.
As of 28th Feb 2013, SSTL has an employee count of about 2,850 out of which 15% are employed in the 3 circles where the Company decided not to bid and would therefore be affected. SSTL has a customer base of over 12.1 million, out of which 13% come from the impacted circles.
With Rajasthan circle also a part of MTS India's footprint, the company is now able to service 40% of country's population, address over 60% of data business potential, safeguard 75% of current revenues and optimize losses.
The spectrum won by SSTL in eight circles is technology neutral and would be valid for 20 years. The company would be required to pay INR 3,639 crores for the license period. The terms include payment of 25% of the final bid amount within 10 days, followed by a payment moratorium until March 2016, after which the balance amount will be paid in 10 equal annual installments. The government has confirmed that SSTL will be able to set off the previous license cost of INR 1,626 crores against the new spectrum cost.
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