MTS India
{{Short description|A telecommunication company}}
{{Use Indian English|date=November 2013}}
{{Use dmy dates|date=October 2020}}
{{Infobox company
| name = MTS India
| trading_name = SSTL
| former_name = Sistema Shyam Teleservices Limited
| type = Subsidiary
| fate = Acquired by Reliance Communications
| logo = MTS India.svg
| company_slogan =
| founded = {{Start date and age|2008|12}}
| defunct = {{End date and age|df=yes|2017|10|31}}
| industry = Telecommunications
| location = New Delhi, India
| area_served = India
| key_people = {{Unbulleted list
|Dmitry Shukov (CEO) }}
| services = {{Unbulleted list
}}
| owner = Reliance Communications
| parent = Sistema
}}
Mobile TeleSystems India (MTS India) was a telecommunications company headquartered in Delhi, India. It was a joint venture and Indian subsidiary of the Russian mobile operator MTS. The company provided wireless voice, broadband Internet, messaging and data services in India.
MTS India was acquired by Reliance Communications (RCom) on 14 January 2016 in an all-stock deal, in which SSTL received a 10% share in RCom. SSTL was merged into RCom on 31 October 2017.
History
Sistema, the largest public diversified corporation in Russia, acquired a 10% stake in Shyam Telelink for a total cash consideration of US$11.4 million at the end of September 2007. Shantanu Telecom along with their partner Sistema had applied for UASL licence in 22 telecom circles of India. In August 2008, they got a pan-India start-up spectrum to start their mobile service operations in the country. They provide mobile services based on CDMA technology under the brand name MTS India and gave contracts to ZTE and Huawei for network expansion. MTS launched Kolkata & West Bengal in May'2009. MTS launched operations in Uttar Pradesh East and West in October 2010.{{Cite news|url=http://www.livemint.com/Companies/ZzWfK97xONnQNGFHyRMBgO/MTS-mobile-services-in-Uttar-Pradesh-by-earlyNovember.html|title=MTS mobile services in Uttar Pradesh by early-November|access-date=31 October 2015|publisher=Mint}}
On 2 February 2012, the Supreme Court of India cancelled 122 licences of 22 mobile operators, including 21 of MTS' 22 licences, in connection with the 2G spectrum case. MTS lost all its licences except the one for Rajasthan circle.{{cite web|url=http://www.medianama.com/2013/02/223-mts-india-shutdown-10-circles/|title=MTS India To Close Down Operations in 10 Circles; 15.6% Subscribers Impacted|author=Vikas SN|date=22 February 2013|publisher=MediaNama|access-date=9 October 2014}} MTS had approximately 2.32 million subscribers in those 10 circles at the time of the announcement, and 14.88 million subscribers nationally.{{Cite news|url=https://gadgetsnow.indiatimes.com/tech-news/mts-to-shut-down-operations-in-10-circles/articleshow/18611064.cms|archive-url=https://web.archive.org/web/20130224082433/http://articles.timesofindia.indiatimes.com/2013-02-21/telecom/37220522_1_sstl-cdma-spectrum-sistema-shyam-teleservices|url-status=live|archive-date=24 February 2013|work=The Times of India|title=MTS to shut down operations in 10 circles|access-date=31 October 2015}} According to MTS officials, the 10 circles where MTS ceased operations constituted 15.62% of its total subscriber base and less than 15% of the company's overall revenue.{{Cite news|url=http://www.livemint.com/Industry/pn4T70yH1s009UTUS6Nq1M/Sistema-to-bid-for-spectrum-shut-down-operations-in-10-circ.html|title=Sistema to shut operations in 10 circles ahead of spectrum auction|publisher=Livemint|access-date=31 October 2015}} In the 2013 spectrum auction, MTS won back licences and spectrum in 8 circles - Delhi NCR, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) and West Bengal.{{Cite news|url=http://www.thehindu.com/business/sistema-bags-spectrum-in-eight-circles-for-rs3639-crore/article4496571.ece|title=Sistema bags spectrum in eight circles for {{INR}} 3,639 crore|work=The Hindu|access-date=31 October 2015}}{{Cite news|url=http://www.business-standard.com/article/companies/sstl-bids-for-8-circles-in-cdma-spectrum-auction-113031100072_1.html|title=Sistema gives 3 circles a miss in CDMA auction |work= Business Standard|access-date=31 October 2015}}
= Acquisition by Reliance Communications =
On 14 January 2016, Reliance Communications (RCom) announced that it had acquired SSTL in an all-stock deal, in which SSTL received a 10% share in RCom, after paying off its existing debt. RCom would assume the liability for installments that SSTL had to pay the government from purchasing spectrum. The liability amounted {{INR}} 392 crore annually for 10 years. As a result of the deal, Reliance acquired nearly 9 million subscribers, as well as SSTL's spectrum in the 850 MHz band.{{Cite web|url=http://www.businesstoday.in/sectors/telecom/reliance-communications-acquires-sistemas-india-unit-in-all-stock-deal/story/225554.html|title=Reliance Communications acquires Sistema's MTS India in all-stock deal|website=www.businesstoday.in|date=2 November 2015 |access-date=2016-09-06}} The merger deal was approved by the Competition Commission of India (CCI) in February 2016.{{Cite web|url=http://gadgets.ndtv.com/telecom/news/reliance-communications-gets-cci-approval-to-acquire-mts-805292|title=Reliance Communications Gets CCI Approval to Acquire MTS|date=22 February 2016 |access-date=2016-09-06}} SEBI cleared the deal by March, and SSTL shareholders approved the deal on 18 March.{{Cite web|url=http://articles.economictimes.indiatimes.com/2016-03-18/news/71630719_1_shyam-group-sistema-shyam-teleservices-sstl-spokesperson|archive-url=https://web.archive.org/web/20160411000009/http://articles.economictimes.indiatimes.com/2016-03-18/news/71630719_1_shyam-group-sistema-shyam-teleservices-sstl-spokesperson|url-status=dead|archive-date=11 April 2016|title=Sistema Shyam shareholders approve merger with Reliance Communications|access-date=2016-09-06}} By mid-August, the deal was approved by tax authorities and the shareholders and creditors of RCom and SSTL.{{Cite news|url=http://economictimes.indiatimes.com/news/economy/policy/dots-approval-for-sstl-rcom-merger-likely-in-q4-sistema/articleshow/53940858.cms|title=DoT's approval for SSTL-RCOM merger likely in Q4: Sistema - The Economic Times|newspaper=The Economic Times|access-date=2016-09-06}} The merger was approved by the Rajasthan High Court on 30 September 2016,{{cite news|agency=Press Trust of India|title=RCom gets Rajasthan HC approval for Sistema acquisition|url=http://www.business-standard.com/article/pti-stories/rcom-gets-rajasthan-hc-approval-for-sistema-acquisition-116093001087_1.html|newspaper=Business Standard India|accessdate=1 October 2016|date=30 September 2016}} and the Mumbai High Court on 7 October 2016.{{Cite news|url=http://economictimes.indiatimes.com/news/economy/policy/reliance-communication-gets-bombay-hc-approval-for-sistema-acquisition/articleshow/54739451.cms|title=Reliance Communication gets Bombay HC approval for Sistema acquisition - The Economic Times|newspaper=The Economic Times|access-date=2016-10-08}}
The final approval, from the Department of Telecommunications, was given on 20 October 2017.{{cite web|title=Telecom department approves RCom-MTS merger - ET Telecom|url=https://telecom.economictimes.indiatimes.com/news/telecom-department-approves-rcom-mts-merger/61182496|website=ETTelecom.com|accessdate=18 November 2017|language=en}}{{Cite news|url=https://economictimes.indiatimes.com/news/company/corporate-trends/rcom-sistema-shyam-merger-gets-dot-approval/articleshow/61187148.cms|title=RCom-Sistema Shyam merger gets DoT approval|date=2017-10-23|work=The Economic Times|access-date=2017-10-24}} On 31 October 2017, RCom announced that it completed the merger.{{cite web|title=Reliance Communications Completes Merger With MTS|url=http://profit.ndtv.com/news/corporates/article-reliance-communications-completes-merger-with-mts-1769486|website=NDTV|date=31 October 2017 |accessdate=18 November 2017}}{{cite web|title=Reliance Communications completes merger with MTS|url=http://zeenews.india.com/companies/reliance-communications-completes-merger-with-mts-2053315.html|website=Zee News|accessdate=18 November 2017|language=en|date=31 October 2017}}
References
Category:Indian companies established in 2008
Category:Technology companies disestablished in 2017
Category:Telecommunications companies of India
Category:Internet service providers of India
Category:Mobile phone companies of India
Category:Companies based in New Delhi
Category:Telecommunications companies established in 2008
Category:2008 establishments in Delhi
Category:2017 disestablishments in India