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Sistema Shyam wins airwaves in eight circles for Rs 3,639 crore

11 Mar 2013 Evaluate

Sistema Shyam TeleServices (SSTL), which saw its permits revoked in 21 service areas after an Indian Supreme Court ruling covering a scandal-tainted award process in 2008, has won airwaves in eight telecommunication zones in country with its minimum bid price of Rs 3,639 crore. The auction of second-generation CDMA spectrum ended after three rounds, with lone bidder Sistema Shyam TeleServices (SSTL) bidding for eight circles.

The firm, which offers services under the MTS brand, bid for the Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) and West Bengal circles. Staying away from Mumbai, Maharashtra and UP (East) circles, the company would shut down its operations in those zones. With this, the telco will now be able to provide services in nine circles, having retained the Rajasthan circle from the auction in 2012. The licenses bagged will be valid for 20 years.

Further, out of total Rs 3,639 crore that SSTL has to pay, 25% would be paid within 10 days, followed by a payment moratorium until March 2016, after which the balance will be paid in 10 equal annual installments. SSTL will be able to offset the previous license cost of Rs 1,626 crore against the new spectrum cost.

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