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Sistema Shyam may reconsider bidding for CDMA airwaves: India CEO

Written by Danish Khan
20 Nov 2012 at November 20, 2012

MTSSistema Shyam Teleservices (SSTL) that nationally operates under the MTS brand has shown interest in bidding for CDMA airwaves in the 800 MHz band if the Government lowered the reserve price. The company’s president & CEO Vsevolod Rozanov said that, SSTL will reconsider bidding for CDMA airwaves only when it gets clarity on the legal route (curative petition) or the bilateral investment treaty.

SSTL has also expressed its willingness for acquisitions in the country. Speaking to a leading newspaper, Rozanov said that, merger and acquisition is on top of the current situation and the company has to see how it can continue in India in any way. Last month, there were media reports claiming that SSTL could acquire Aircel, however the news was not confirmed by the top management of the company.

In the February ruling this year SSTL lost all of its licenses in the country along with eight other companies. Just before the auctions, the company issued the statement that it will not participate in the 2G auctions. The company is awaiting the outcome of its curative petition filed in the apex court on the grounds that its mobile permits should be treated differently as it was allotted CDMA airwaves.

Indian telecom regulator TRAI earlier said that the reserve price of CDMA airwaves in the 800 MHz band should be 1.3 times that of GSM spectrum. However, the Government had to call-off the CDMA spectrum auction, due to the ouster of Tata Teleservices and Videocon from the auction. The Indian Government now plans to organize another auction before March 31, 2013 for the CDMA and unsold GSM spectrums.



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