For Sistema Shyam TeleServices Limited (SSTL), 2013 was an eventful year with the company rebuilding its operations after its telecom licences were cancelled in 2012. Its future growth plans and strategies are largely centred on the promotion of data services. In an interview with tele.net, Dmitry Shukov, chief executive officer, MTS India, talks about the company’s operational experience so far and the business strategies to strengthen it’s data network expansion in India. Excerpts:

How was SSTL’s performance in 2013?

The year 2013 began on a note of uncertainty as 21 of SSTL’s 22 telecom licences were cancelled by the Supreme Court in its judgment dated February 2, 2012. However, in the spectrum auctions held in March 2013, the company won back its licences and spectrum in eight circles. It was a case of reclaiming lost ground. Including Rajasthan, our nine-circle footprint ensured that SSTL, which provides services under the MTS brand, covered about 60 per cent of the data market in the country.

October 2013 marked another key development for SSTL as the company received its unified telecom licences that are valid for 20 years. This made SSTL the first telecom operator to receive licences under the new regime. Recently, we launched MTS’s 3GPLUS telecom network  based on the next-generation EVDO Rev. B Phase II technology. The network roll-out has enabled MTS to launch the MBlaze Ultra dongle, which offers data speeds of up to 9.8 Mbps and increases the focus on our smartphone business.

To sign off 2013 on a high, in December, MTS launched the state-of-the-art dual-SIM (EVDO + GSM) Canvas Blaze smartphone in partnership with Micromax. Canvas Blaze, priced at Rs 10,999, comes with 2 GB of mobile internet usage, 1,000 minutes for MTS-to-MTS local calls and 120 minutes of other local and STD calls for the first six months. We plan to increase such offerings going forward.

What has been the company’s regulatory experience?

While some would say that the dust has settled and there is more clarity in the telecom landscape in India, this is not the case for MTS, which is the country’s only pure-play CDMA operator. After participating in the spectrum auctions in March 2013 and winning 3.75 MHz spectrum in the 800 MHz band in eight telecom circles, we expected things to improve and implement our long-term strategies to drive data growth. We have been demanding 5 MHz of contiguous spectrum in the 800 MHz band to provide best-in-class data services to our customers. We are glad that the Department of Telecommunications and the Empowered Group of Ministers on Telecom have finally taken note of this and spectrum in the 800 MHz band will be auctioned as well.

What are the company’s expectations on the policy and regulatory fronts in 2014?

TRAI is yet to provide clarity on the pricing of spectrum in the 800 MHz band. This delay has impacted the implementation of the company’s voice-enabled data-centric strategies.

What will be the company’s key focus areas during 2014?

Looking beyond regulatory issues, MTS wants to fully leverage the 3GPLUS telecom network by strengthening its smartphone portfolio. We are working with multiple handset partners and plan to offer an exciting range of devices in 2014. In addition, we plan to expand our retail network in order to get closer to our customers.

Apart from this, we are constantly introducing programmes and initiatives to maintain the enthusiasm of our team at high levels, keep sales staff motivated and involve all stakeholders to ensure that MTS India turns OIBDA (operating income before depreciation and amortisation) positive by end-2014.