SSTL gets Unified Licence for telecom services

Russian conglomerate Sistema controlled SSTL said that it had received Unified Access Services Licence from the government.

"We are delighted to get the Unified Licence. This is a positive development and would bring clarity in the operating environment for the Company. We are now looking forward to the allotment of the third carrier (slot) of spectrum that we had won in the March 2013 auctions," Sistema Shyam Teleservices' chief executive officer Dmitry Shukov said in a statement.

The company, which conducts it operations under MTS brand, has become "the first telecom operator in the country to be a part of Unified Licensing regime".

Though the company has permit to operate in 9 circles, its Unified Licences are valid for eight service areas - Delhi, Gujarat, Karnataka, Kerala, Kolkata, Tamil Nadu, UP (West) and West Bengal.

Rajasthan another of the company's service areas, where it has operations, is being run under old the telecom licence which is called Unified Access Services Licences.

Under the Unified Telecom License, it would provide technology neutral telecom services for a period of 20 years.

Shukhov said that SSTL was now looking forward to the allotment of the third carrier of spectrum that it had won in the March 2013 auctions.

The cancellation of license ordered by the Supreme Court in February last year (See: SC cancels all 2G licences, orders fresh spectrum auction) had severely impacted the company, with the company losing pan-India (22 circles) license in the country. It however, won back spectrum to offer services in the eight circles of Delhi, Gujarat, Karnataka, Kerala, Kolkata, Tamil Nadu, UP (West) and West Bengal.

The company's focus is now on achieving break-even by the end of 2014 and is now focused on driving growth across all business lines, in sync with its data centric voice enabled strategy.

SSTL expects to break-even across six circles by mid-2014.