Sistema Shyam TeleServices Limited (SSTL), also known as Mobile TeleSystems and commonly referred to by the abbreviation MTS, is the Indian subdivision of Russian Mobile TeleSystems telecommunication company headquartered in New Delhi, India. MTS India is a subsidiary of Russian conglomerate Sistema and operates across India with over 16 million customers as on 2012. History
Sistema, the largest p
ublic diversified corporation in Russia, acquired a 10% stake in Shyam Telelink for a total cash consideration of US$ 11.4 million at the end of September 2007. Shantanu Telecom along with their partner Sistema had applied for UASL licence in 22 telecom circles of India.[2] In August 2008, they became the first new mobile operator to get a pan-India start-up spectrum to start their mobile service operations in the country. They provide mobile services based on CDMA technology under the brand name MTS India. Shyam Telecom gave Project to ZTE and Huawei for their network expansion. MTS launched operations in Uttar Pradesh East and West in October 2010.[3]
On 2 February 2012, the Supreme Court of India cancelled 122 licences of 22 mobile operators, including 21 of MTS' 22 licences, in connexion with the 2G spectrum scam. MTS lost all its licences except the one for Rajasthan circle. The Supreme Court directed the Government of India to conduct fresh auctions for sale of the spectrum within a period of four months, asking the TRAI to come up with fresh recommendations. On 21 February 2013, MTS officially announced that it would participate in the spectrum auction in March 2013, and had filed application in the Supreme Court in January 2013, stating that it intended to do so.[4] On the same date, MTS also announced that it would close operations in 10 telecom circles within 30 days. The 10 circles are - Assam, Andhra Pradesh, Bihar, Himachal Pradesh, Haryana, Jammu and Kashmir, Madhya Pradesh, North East, Orissa and Punjab.[5][6] MTS had approximately 2.32 million subscribers in those 10 circles at the time of the announcement. MTS had a total national subscriber base of 14.88 million.[7] According to MTS officials, the 10 circles where MTS ceased operations constituted 15.62% of its total subscriber base and less than 15% of the company's overall revenue.[8][9]
In the 2013 spectrum auction, MTS won back licences and spectrum in 8 circles - Delhi NCR, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) & West Bengal. SSTL chose not to bid for Mumbai, Maharashtra and Uttar Pradesh (East), which meant that it would have to close operations in those circles. MTS had over 15 lakh subscribers in those 3 circles at the time