Shyam Tele gets spectrum for all-India rollout

NEW DELHI: Mobile operator Shyam Telecom, in which Russian communications major Sistema holds a majority stake, has become the first of the new telecom players to get pan-India spectrum for launching mobile services. The company has been allotted radio frequencies on the CDMA technology platform. New GSM licensees such as Datacom, Unitech, Loop Telecom and Swan have been given start-up spectrum, but this has been largely restricted to the southern circles in the country.

ET has learnt that communications minister A Raja has already approved the allocation of spectrum to Shyam Telecom. Earlier this year, Shyam-Sistema had announced that the company would offer mobile services across India on the CDMA platform.

The company also bagged licences for 21 circles except Rajasthan, where it already offers services under the brand name Oasis. Shyam also becomes the third private pan-India player to offer services on the CDMA platform.

Sistema president Alexander Goncharuk recently told ET that the company would increase its stake in Shyam to 74 per cent over a period of time. Sistema has already invested about $500 million in India — it paid the Rs 1,651 crore licence fee for Shyam. Sistema also plans to finance its investments by utilising money under the Rupee-Rouble debt agreement between India and Russia.

Source : Economic Times