Road Map of MTS India Submitted to: – Dr. SureshBorkar Submitted by:-Shruti Sawarkar (17019) Utkarsh Bodkhe (17008) About The Company Sistema Shyam Tele Services Limited (SSTL)is subsidiary of the Russian mobile operator company MTS,doing business in India as MobileTele Systems India (MTS India). MTS India operates on Code Division Multiple Access (CDMA) which is oneof the two types of radio systems like GSM & CDMA mobile Phonesoperators—and it used to own around 40% of India’s CDMA High Speed MobileBroadband Data. History of MTS IndiaSistema, the giant telecom company of Russia,acquired about 10% stakes in Shyam Tele link for a block deal of US$ 11.
4million at the end of September in the year 2007. Sistema had partnered withShantanu Telecom and had applied for spectrum licence in 22 telecom circles ofIndia. Spectrum Allocation In the 2G auction for CDMA services,MTS India / SSTL bided for 1.25 MHz bandwidth frequency in 8 circles by India’sDepartment of Telecom (DOT).
The total cost spend in the auction was about ?3,639 crores.Due to 2G spectrum allocation scamaround 22 licences of MTS India were cancelled. They started to close the services from UP& Gujrat. Road Map of 5G Technology As the company is acquired by theReliance Communication the current prospectus of the company is decided by RComonly. If MTS India comes again firstly it need to acquire the spectrum for 5G.For that the company needs to participate in the spectrum auction by thegovernment. As the company is making good profits in Russia with annual turnoverof more than 300 million rubel.
With this such strong base in Russia the MTSIndia can re-launch itself in India. The competitors for MTS India will beReliance Jio, Airtel, and Vodafone-Idea. To give a fight to these companies MTShas come up with new plan and customer attraction strategies.
For the deployment of 5G technologyMTS India has to deploy and adapt the 5G standards which are applied byInternational Telecom Union (ITU). Higherspectrum prices also forced different operators to offer 4G services at apremium costing almost 5 times the existing based data plans. That made Indiansubscribers turn cautious about 4G resulting into less than 2% penetrationdespite 10-15% penetration of 4G enabled handsets. India has a very highsubscriber density per Base Transceiver Station – BTS (more than 2,000 inmetros) as compared to other countries. If sizeable proportion of it decides toopt for 5G, with very high data traffic compared to 2G, 3G & 4G networkswill be congested very soon.
Worldwide, for 4G, Wi-Maxis more widely adopted technology than Long Term Evolution (LTE) having a userbase almost four times that of the latter but the latter is growing much fasterthan the former. North America (Verizon and AT&T in US), Japan and Chinaare the major countries of LTE worldwide.With this technology MTSIndia can acquire lot of subscribers in India but the company has to wait untilthe mobile equipment manufactures built the mobile phones with 5G embalmed technology.In such scenario if MTS join hands with Nokia or Hawaii mobile manufactureswill be a great advantage as these companies are manufacturing not just mobile equipment’sbut also different equipment’s required for MSC, BSC and GMSC. The costing of the deployment of the 5G technologyin India would be a greater challenge for the company, but it would be additionalbenefit to them as no one has planned to start 5G services in India this wouldhelp MTS India to acquire large customer base and grow their business to a greatextent. From the year 2018-2022 the MTS India has agreater scope to start working on deployment of 5G technology in India as otheroperators are still working on 4G technology and yet to deploy it to thefullest. This gives MTS India a better opportunity to come back with a greatpower n technology to change the scenario of the Indian telecom market.
