With the end of India’s CDMA (800 Mhz band) spectrum auction, Sistema Shyam TeleServices Ltd. (SSTL) which operates its telecom services under brand MTS India has secured spectrum license in the 800 MHz band in eight telecom circles which includes Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) and West Bengal. Interestingly company decided not to bid for Mumbai, Maharashtra and UP East telecom circles and now closing down all its operations in this telecom circle.

MTS India secures Spectrum license in 8 Telecom Circles, Closing Down Operations in 3 Circles

MTS India now has CDMA spectrum license to operates in 9 telecom circles, which also include Rajasthan circle which was not affected by the Honorable Supreme Court of India’s order dated 2nd February 2012. MTS India earlier confirmed its participation in the upcoming spectrum auctions starting 11th March 2013. While bidding for spectrum in the auctions, MTS India considered a range of variables including spectrum pricing, number of carrier slots available, levels of competition, future data potential in the circles etc.

The new eight spectrum license won by MTS is technology neutral and would be valid for 20 years, for which company need to pay Rs 3,639 crores. Government has confirmed that SSTL will be able to set off previous license costs against the new auction prices. With this license MTS India will able to service 40% of country’s population, address over 60% of data potential and also safeguard 75% of its current revenues.

MTS has a customer base of over 12.1 million, out of which 13% come from the impacted three telecom circles which company decided not to bid. Customers in this three circles will be immediately informed to port out to other telecom operators of their choice.

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