Sistema Shyam Teleservices Ltd (SSTL), which operates in India as MTS, has reported a decline of 6.4% in Average Minues of Use to 307 minutes from 328 minues, even as its connections base grew during the quarter ended June 30th 2010 to 5.2 million, up 33.5% quarter on quarter. Since then, the company has crossed the 6 million mark. India is a multi-SIM market, and customers tend to own multiple connections, and switch easily. Still in its early stages of deployment, SSTL launched in its 12th circle (Andhra Pradesh) during the quarter. It’s mobile broadband subscriber base (EVDO Data Card) grew to 120,000 by end of the quarter. The company says that data subscriber base is now more than 200,000. A couple of months ago, MTS had said that its broadband base affords it an ARPU of Rs. 500.
According to MTS India, its Average Revenue Per User stayed stable, even as revenues went up 34.9% quarter on quarter – up to $23.1 million from $17.1 million. The company, like its peers Uninor, Videocon, Etisalat DB and S Tel, is currently in investment mode. MTS India reported and OIBDA of -$85M, and an operating loss of $206.6. It’s fixed line subscriber base declined to 111,000 users from 134,000 subscribers in Q1.
Financing & IPO
In August 2010, SSTL received US$ 280 million (Rs 13 billion) loan from the State Bank of India to finance the company’s expansion plans and introduce new products and services. In addition, a couple of days ago, the Russian government approved a purchase of 20% equity in MT?S India,for $600 million. MTS is planning an IPO in India, in early 2011.
Sistema owns 73.71% in Sistema Shyam, which operates in India under the MTS brand, and has licenses to operate services in all 22 circles.
– Russian Government Approves Buy Of 20% In MTS India For $600M
– MTS Has 5M Mobile, Over 100k Mobile Broadband Subs; Russia To Invest $677M For 20% Stake
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