Sistema Shyam Teleservices (SSTL) which operates in India as MTS India, saw a significant 12% decline in its data card subscribers for the quarter – registering 1.56 million subscribers for the quarter ending March 31, 2013 (Q1 2013).

The non-voice revenues which includes data and VAS revenues, was at Rs 125.5 crore for the quarter, down 13% from 143.7 crore revenues in the previous quarter. The non-voice revenues accounted for 35.7% of MTS India’s total revenues during the quarter, down from 36.8% in the previous quarter.


– Blended mobile ARPU increased by 2.5% to Rs 81 for the quarter.

– Minutes of Use increased to 295 million minutes for the quarter, up 10% from 268 million minutes reported in the previous quarter. The company attributed this growth to the increase in traffic during the festive season.

– Sistema reported a total mobile subscriber base of 11.92 million customers for the quarter ending March 31, 2012, a 20% decline from the previous quarter. The company attributed this decline to strict control over its sales and marketing expenditure and market competition.

– While the total data card subscribers was down 12% to 1.56 million subscribers for the quarter, it declined by only 1% in nine telecom circles where the company is currently operational. MTS India attributed this decline to the new subscriber acquisition policy.

– Sistema secured CDMA spectrum in eight telecom circles for Rs 3,639 crore in the 2G spectrum auctions held in March 2013. Sistema bought 3 blocks (of 1.25 MHz of spectrum each) in Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) and West Bengal telecom circles.

– Sistema shut down its operations in 10 telecom circles in February 2013 and shut down its operations in additional three circles in the following month. The company is now operational in 9 of the 22 telecom circles in India, which includes the eight circles where it secured spectrum in the March spectrum auctions and Rajasthan circle which was not affected by the landmark Supreme Court judgment last year.

– Last month, MTS India had appointed Dmitry Shukov as its CEO, who will be taking over from Vsevolod Rozanov, the current President and CEO of SSTL. Shukov is expected to start in his new role from June 1, 2013.


– Consolidated revenues declined to Rs 352 crore for the quarter, down 10% from Rs 390.2 crore in the previous quarter and down 14% from Rs 407.2 crore revenues in the same quarter last year. The company attributed the decline to shutting down its operations in 13 circles, overall licence uncertainties and new customer registration regulations.

– Net loss was at Rs 643.9 crore for the quarter, a 17% increase from Rs 778.7 crore loss in the previous quarter but a 22% dip from Rs 527.8 crore loss in the same quarter last year.

– SSTL made investments of Rs 36.4 crore during the quarter while the debt from banks and financial institutions at the end of March 31, 2013 stood at Rs 4628 crore.

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