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MTS India To Close Down Operations In 10 Circles; 15.6% Subscribers Impacted

After confirming that it will be participating in the forthcoming spectrum auctions, Sistema Shyam Teleservices (MTS India) is winding down operations in 10 of the 22 telecom circles in the country, including Assam, Andhra Pradesh, Bihar, Himachal Pradesh, Haryana, Jammu & Kashmir, Madhya Pradesh, North East, Orissa and Punjab. The telco stated that this shutdown was necessary to conserve its resources after spending an year of uncertainty due to the 2G license cancellation issue and it has now started informing its subscribers in these 10 circles to port out to other telcos. The company also noted that the government has agreed to adjust the previous licence costs against the new auction prices. Sistema also mentioned that less than 10% of its 3000 employees were employed in these circles and it is currently taking necessary measures to re-allocate these affected employees to other circles or place them in other companies. Impacted Subscribers According to the data released by TRAI in December 2012 (pdf), MTS has about 2.3 million subscribers (2,324,671) subscribers or 15.62% subscribers in the affected areas affected from its subscriber base of 14.88 million (14,880,003). 2G Spectrum Allocation Timeline Here’s a timeline of events following the Supreme Court Verdict in the 2G Spectrum Allocation Scam case: - Feb 2, 2012: Supreme Court cancels 122 licenses of 22 operators and directed the Government to conduct fresh auctions for sale of the spectrum within a period of four months, asking the TRAI to come up with fresh recommendations. - March 5, 2012: The Indian government files a review petition in the Supreme Court in response to the Court’s verdict in…

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