 "We're eagerly awaiting the spectrum sharing and trading rules: Dmitry Shukov")
Russia-based telecom firm Sistema's India unit, Sistema Shyam Teleservices, offers services under the MTS brand in nine circles. It is banking on data services - WiFi and 4G - for boosting revenue. Dmitry Shukov, chief executive officer, talks to Mansi Taneja on the strategy. Edited excerpts:
Your revenues from the data segment reached 51.1 per cent of the total in the March quarter. Which circles contributed the most and what is the plan on launching 4G (fourth-generation) services?
We started our data-centric strategy in 2013 and at that time, the share of data services was around 25 per cent. In two years, it has doubled. We are the first telecom operator in India whose majority of revenue is from data. Tamil Nadu and Rajasthan are the biggest contributors.
Are you in discussion with (govt-owned) BSNL for launching co-branded 4G services? Are you looking to go pan-India with this tie-up?
We are in discussion with telecom companies, as our spectrum is not enough for launching a LTE/4G network. We do not have contiguous spectrum in 800 MHz and the number of players in this band is limited. Prior to the spectrum auction in March, we were the only telco with liberalised spectrum. Now, other companies have also got hold of this. The talks are preliminary and it would be early to talk about which circles or pan-India. We are eagerly awaiting the spectrum sharing and trading guidelines.
Is the system in India ready for 4G LTE?
The demand is very high. Current technologies, be it 2G or 3G, are enough for huge data consumption. We will see launch of massive LTE services within a year. We will launch these services in 800 MHz. This spectrum band is the best for the Indian scenario in terms of rollout and indoor penetration. The only issue is availability of spectrum.
You have been so upbeat on data services. Then, why did you choose not to participate in the just-concluded spectrum auction?
We decided it was much better to work with other telecom companies via spectrum sharing and trading. Even, if we would have participated, contiguity of spectrum would have been an issue. It would not have helped us.
There have been reports of a potential deal with Reliance Communications. Are you looking at an acquisition in India or a tie-up for expansion across India?
We do not comment on market speculation. But, yes, we have negotiations with all operators to explore opportunities, as there is a need for consolidation in the sector. The rules of the game i.e the merger and acquisition policy, are yet to be announced by the government. We will take a call once it is notified.
Recently, you launched WiFi HomeSpot and WiFi services in some railway stations? What is the plan on offering WiFi across India?
We have acquired a Class-A ISP licence which will allow us to offer WiFi across the country. Our WiFi HomeSpot provides high-speed broadband access to five users simultaneously, including smartphone users. We have also set up WiFi hotspots at six railway stations through a partnership with RailTel in Mumbai CST, Ahmedabad, Agra, Varanasi, Secunderabad and Howrah (Kolkata).
We have to treat WiFi as a utility service. We are talking to RailTel for monetisation of this model. Currently, we do it free of cost. We are also planning to provide additional services via WiFi. After railway stations, we are working to offer the service across major cities.
Your revenues from the data segment reached 51.1 per cent of the total in the March quarter. Which circles contributed the most and what is the plan on launching 4G (fourth-generation) services?
We started our data-centric strategy in 2013 and at that time, the share of data services was around 25 per cent. In two years, it has doubled. We are the first telecom operator in India whose majority of revenue is from data. Tamil Nadu and Rajasthan are the biggest contributors.
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The next step is to launch LTE (4G) services. We are in negotiations with other telecom players to make our spectrum basket more comfortable for launching these. It will be a game changer and, clearly, there is a good system now for implementation of LTE.
Are you in discussion with (govt-owned) BSNL for launching co-branded 4G services? Are you looking to go pan-India with this tie-up?
We are in discussion with telecom companies, as our spectrum is not enough for launching a LTE/4G network. We do not have contiguous spectrum in 800 MHz and the number of players in this band is limited. Prior to the spectrum auction in March, we were the only telco with liberalised spectrum. Now, other companies have also got hold of this. The talks are preliminary and it would be early to talk about which circles or pan-India. We are eagerly awaiting the spectrum sharing and trading guidelines.
Is the system in India ready for 4G LTE?
The demand is very high. Current technologies, be it 2G or 3G, are enough for huge data consumption. We will see launch of massive LTE services within a year. We will launch these services in 800 MHz. This spectrum band is the best for the Indian scenario in terms of rollout and indoor penetration. The only issue is availability of spectrum.
You have been so upbeat on data services. Then, why did you choose not to participate in the just-concluded spectrum auction?
We decided it was much better to work with other telecom companies via spectrum sharing and trading. Even, if we would have participated, contiguity of spectrum would have been an issue. It would not have helped us.
There have been reports of a potential deal with Reliance Communications. Are you looking at an acquisition in India or a tie-up for expansion across India?
We do not comment on market speculation. But, yes, we have negotiations with all operators to explore opportunities, as there is a need for consolidation in the sector. The rules of the game i.e the merger and acquisition policy, are yet to be announced by the government. We will take a call once it is notified.
Recently, you launched WiFi HomeSpot and WiFi services in some railway stations? What is the plan on offering WiFi across India?
We have acquired a Class-A ISP licence which will allow us to offer WiFi across the country. Our WiFi HomeSpot provides high-speed broadband access to five users simultaneously, including smartphone users. We have also set up WiFi hotspots at six railway stations through a partnership with RailTel in Mumbai CST, Ahmedabad, Agra, Varanasi, Secunderabad and Howrah (Kolkata).
We have to treat WiFi as a utility service. We are talking to RailTel for monetisation of this model. Currently, we do it free of cost. We are also planning to provide additional services via WiFi. After railway stations, we are working to offer the service across major cities.