Sistema Shyam plans public issue
12-08-2010
"Our EVDO technology is on par with 3G services" says CEO
Sistema Shyam TeleServices, a joint venture in which Sistema, one of Russia's largest listed companies, is majority holder, will soon float a public issue after Sistema concludes its funds infusion programme of around $675 million.
The Russian government has invested in the joint venture. Indian new issue market rules state that promoter-investment must be frozen before the public issue. "This could take around three-four months" Vsevolod Rozanov, president and CEO of Sistema Shyam TeleServices, told Times of India newspaper
He said both the Russian investment and the public issue will be made by way of issuing fresh equity shares. This means the money, upwards of $1 billion, will accrue to the company for its future plans.
The Russian company has already invested over $1.5 billion in India.
Sistema -- which offers mobile voice and data services in India under the MTS brand -- currently holds 73.71 percent share in the Indian venture, 23.79 percent is held by the Shyam Group and the remaining 2.5 percent is with the public.
Rozanov said despite being late entrants in India, there were already some six million subscribers in the country in 12 out of 22 circles in which the company was operating. "The target of 10 million subscribers by the yearend is very much in sight."
Rozanov said the decision not to participate in the auction of broadband airwaves in India was taken because the technology they have opted for was already delivering very high speeds, which will accelerate further by migrating to next generation technology.
"We launched our high-speed mobile broadband service under the Mblaze brand only in November 2009 but we already have more than 150,000 customers. Our network speed and quality also helped us to successfully launch MTS TV in April," he said.
"What I can also say is our EVDO technology, which is on the CDMA platform, is at par with 3G services under the GSM platform, which are yet to be rolled out by private telecom operators in India. So we have no cause for worry."
Based on story in Times of India
Sistema Shyam TeleServices, a joint venture in which Sistema, one of Russia's largest listed companies, is majority holder, will soon float a public issue after Sistema concludes its funds infusion programme of around $675 million.
The Russian government has invested in the joint venture. Indian new issue market rules state that promoter-investment must be frozen before the public issue. "This could take around three-four months" Vsevolod Rozanov, president and CEO of Sistema Shyam TeleServices, told Times of India newspaper
He said both the Russian investment and the public issue will be made by way of issuing fresh equity shares. This means the money, upwards of $1 billion, will accrue to the company for its future plans.
The Russian company has already invested over $1.5 billion in India.
Sistema -- which offers mobile voice and data services in India under the MTS brand -- currently holds 73.71 percent share in the Indian venture, 23.79 percent is held by the Shyam Group and the remaining 2.5 percent is with the public.
Rozanov said despite being late entrants in India, there were already some six million subscribers in the country in 12 out of 22 circles in which the company was operating. "The target of 10 million subscribers by the yearend is very much in sight."
Rozanov said the decision not to participate in the auction of broadband airwaves in India was taken because the technology they have opted for was already delivering very high speeds, which will accelerate further by migrating to next generation technology.
"We launched our high-speed mobile broadband service under the Mblaze brand only in November 2009 but we already have more than 150,000 customers. Our network speed and quality also helped us to successfully launch MTS TV in April," he said.
"What I can also say is our EVDO technology, which is on the CDMA platform, is at par with 3G services under the GSM platform, which are yet to be rolled out by private telecom operators in India. So we have no cause for worry."
Based on story in Times of India
