Sistema cuts back spending as investor patience wears thin

18 Jun 2012

Russian-backed cellco Sistema Shyam Teleservices (SSTL), which offers services on the subcontinent as MTS India, has ceased all investment in voice services in India until the reauction of spectrum due later this year, the Economic Times reports. SSTL, which was one of the operators to have its licence revoked by the Supreme Court in February, has threatened to pull out of the Indian market if the government goes ahead with controversial plans to reauction the cancelled authorisations. SSTL President and CEO Vsevolod Rozanov said: ‘We have put on hold all investments in our voice business and are concentrating on data services, which are the core to our business now,’ adding that existing SSTL customers would be unaffected. Explaining the decision, Rozanov said that regarding the company’s future in India the patience of its investors was running out.

India, Russia, Sistema Shyam TeleServices (SSTL, MTS India)