Amid challenging market dynamics, telecom operators are discussing with each other for partnerships and alliances, including 4G services, telecom firm Sistema Shyam Teleservices today said.
"The market dynamics within the Indian telecom sector continue to be very challenging. Given this context, it is only natural for telecom operators to talk to each other on various possibilities including launch of 4G services through partnerships and alliances," SSTL CEO Dmitry Shukov said when asked if the company was in discussions with Reliance Communications for a potential deal.
However, in the absence of a regulatory framework specially relating to spectrum sharing and trading, it is premature to comment on any of such possibilities, he added.
"One expects that Indian government comes out with a clear roadmap on all such issues for any consolidation to happen within the industry," Shukov said.
Reports had suggested that SSTL, which operates mobile services under MTS brand, is in discussions with Reliance Communications for a potential acquisition.
Another report said the Indian unit of Russian telecom company Sistema will offer 4G services across the country, through joint branding with state-run BSNL.
SSTL, in which Russia's Sistema JSFC holds majority stake, offers CDMA services to about 10 million subscribers across nine telecom circles, including Delhi, Rajasthan, Tamil Nadu, Karnataka, Kolkata and Uttar Pradesh (West).
The company today announced that its losses for the quarter ended March 31, 2015 widened to Rs 391 crore from a net loss of Rs 316.2 crore in the year-ago period.
However, its revenues grew 12% to Rs 357.8 crore in the said quarter compared with Rs 318.8 crore in the year-ago period, driven largely by increase in data revenues.
