SSTL breaks even in six circles

23 Jun 2015

Russian-backed cellco Sistema Shyam TeleServices (SSTL) has achieved operational break-even in six of its nine circles on the back of growing non-voice revenues, the Economic Times writes, citing CEO Dmitry Shukov. The growing popularity of data services has seen average monthly ARPU increase to INR127 (USD2.0) in March 2015 from INR107 twelve months earlier, whilst non-voice revenues passed the 50% mark in the three months to end-March 2015, making up 51% of service revenues compared to 35% the previous year. Consequently, the cellco has become ‘OIBDA positive’ in Tamil Nadu, Delhi, Kolkata, West Bengal, Rajasthan and Karnataka. Mr Shukov added that the company would leave ‘no stone unturned’ to achieve the same in Gujarat, Kerala and Uttar Pradesh West.

SSTL’s announcement follows the revelation earlier this month that the company is involved in exclusive talks with Reliance Communications (RCOM) regarding a potential merger via a share swap deal.

India, Sistema Shyam TeleServices (SSTL, MTS India)