CDMA operator Sistema Shyam Teleservices (SSTL), controlled by Russian conglomerate Sistema, has termed telecom regulator Trai’s recommendation to withhold spectrum auctions in the 800 MHz band as “discriminatory” and “disadvantageous” to its business operations and investments. The company, which witnessed widening of loss in the third quarter of this year, said lack of 800 MHz auctions will hamper its plans for expansion and fresh investments beyond the $3.2 billion it has already spent.
“We want fair play, a level playing field and auctions in the 800 MHz band,” said Dmitry Shukov, CEO of SSTL, which offers mobile services in nine circles under the MTS brand. “In case, we do not get more spectrum, we cannot continue our development in India... We want to upgrade our network and need spectrum in the fresh round of auctions.”
The company said that non-auction of CDMA spectrum will put it at a disadvantage against GSM players who will have the option to buy additional airwaves in the 900 MHz and 1800 MHz bands where spectrum will be sold in January.
“Trai’s decision puts us in a completely disadvantageous position. This is extremely discriminatory. We do not agree with this position as this is discriminatory,” SSTL’s head for strategy Ranjan Banerjee said.
Sistema Shyam TeleServices Ltd (SSTL) said that it has no problems if the GSM players compete in upcoming auction to buy CDMA airwaves in the 800 MHz spectrum, which essentially is a CDMA band.
The Telecom Regulatory Authority of India (Trai) had recently recommended up to 62% cut in base for GSM spectrum and no auction of the 800 Mhz spectrum. It suggested that the possibility of a part of CDMA airwaves being used for GSM services may be explored.
“We have no reservations against GSM players bidding for 800 Mhz (the CDMA band) and competing with us. What is important is that 800 Mhz should be put for auction so that our growth plan is not throttled,” said Dmitry Shukov, CEO of Sistema Shyam TeleServices.
SSTL announced its July-September quarter earnings where it reported its net loss dropping further by 53% to Rs. 760 crore from the same period a year ago, largely due to forex loss and business restructuring.
“We want fair play, a level playing field and auctions in the 800 MHz band,” said Dmitry Shukov, CEO of SSTL, which offers mobile services in nine circles under the MTS brand. “In case, we do not get more spectrum, we cannot continue our development in India... We want to upgrade our network and need spectrum in the fresh round of auctions.”
The company said that non-auction of CDMA spectrum will put it at a disadvantage against GSM players who will have the option to buy additional airwaves in the 900 MHz and 1800 MHz bands where spectrum will be sold in January.
“Trai’s decision puts us in a completely disadvantageous position. This is extremely discriminatory. We do not agree with this position as this is discriminatory,” SSTL’s head for strategy Ranjan Banerjee said.
Sistema Shyam TeleServices Ltd (SSTL) said that it has no problems if the GSM players compete in upcoming auction to buy CDMA airwaves in the 800 MHz spectrum, which essentially is a CDMA band.
The Telecom Regulatory Authority of India (Trai) had recently recommended up to 62% cut in base for GSM spectrum and no auction of the 800 Mhz spectrum. It suggested that the possibility of a part of CDMA airwaves being used for GSM services may be explored.
“We have no reservations against GSM players bidding for 800 Mhz (the CDMA band) and competing with us. What is important is that 800 Mhz should be put for auction so that our growth plan is not throttled,” said Dmitry Shukov, CEO of Sistema Shyam TeleServices.
SSTL announced its July-September quarter earnings where it reported its net loss dropping further by 53% to Rs. 760 crore from the same period a year ago, largely due to forex loss and business restructuring.
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