Road Map of MTS India

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Submitted to: – Dr. Suresh
Borkar                                                 Submitted by:-Shruti Sawarkar (17019)

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About The Company

 

 

 

 

 

Sistema Shyam Tele Services Limited (SSTL)
is subsidiary of the Russian mobile operator company MTS,
doing business in India as Mobile
Tele Systems India (MTS India). MTS India operates on Code Division Multiple Access (CDMA) which is one
of the two types of radio systems like GSM & CDMA mobile Phones
operators—and it used to own around 40% of India’s CDMA High Speed Mobile
Broadband Data.

 

 

 

History of MTS India

Sistema, the giant telecom company of Russia,
acquired about 10% stakes in Shyam Tele link for a block deal of US$ 11.4
million at the end of September in the year 2007. Sistema had partnered with
Shantanu Telecom and had applied for spectrum licence in 22 telecom circles of
India.

 

 

 

 

 

 

 

Spectrum Allocation

 

In the 2G auction for CDMA services,
MTS India / SSTL bided for 1.25 MHz bandwidth frequency in 8 circles by India’s
Department of Telecom (DOT). The total cost spend in the auction was about ?
3,639 crores.

Due to 2G spectrum allocation scam
around 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 the
Reliance Communication the current prospectus of the company is decided by RCom
only. 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 the
government. As the company is making good profits in Russia with annual turnover
of more than 300 million rubel. With this such strong base in Russia the MTS
India can re-launch itself in India. The competitors for MTS India will be
Reliance Jio, Airtel, and Vodafone-Idea. To give a fight to these companies MTS
has come up with new plan and customer attraction strategies.

For the deployment of 5G technology
MTS India has to deploy and adapt the 5G standards which are applied by
International Telecom Union (ITU).

Higher
spectrum prices also forced different operators to offer 4G services at a
premium costing almost 5 times the existing based data plans. That made Indian
subscribers turn cautious about 4G resulting into less than 2% penetration
despite 10-15% penetration of 4G enabled handsets. India has a very high
subscriber density per Base Transceiver Station – BTS (more than 2,000 in
metros) as compared to other countries. If sizeable proportion of it decides to
opt for 5G, with very high data traffic compared to 2G, 3G & 4G networks
will be congested very soon.

 

 

 

Worldwide, for 4G, Wi-Max
is more widely adopted technology than Long Term Evolution (LTE) having a user
base almost four times that of the latter but the latter is growing much faster
than the former. North America (Verizon and AT&T in US), Japan and China
are the major countries of LTE worldwide.

With this technology MTS
India can acquire lot of subscribers in India but the company has to wait until
the mobile equipment manufactures built the mobile phones with 5G embalmed technology.
In such scenario if MTS join hands with Nokia or Hawaii mobile manufactures
will be a great advantage as these companies are manufacturing not just mobile equipment’s
but also different equipment’s required for MSC, BSC and GMSC. 

The costing of the deployment of the 5G technology
in India would be a greater challenge for the company, but it would be additional
benefit to them as no one has planned to start 5G services in India this would
help MTS India to acquire large customer base and grow their business to a great
extent.

From the year 2018-2022 the MTS India has a
greater scope to start working on deployment of 5G technology in India as other
operators are still working on 4G technology and yet to deploy it to the
fullest. This gives MTS India a better opportunity to come back with a great
power n technology to change the scenario of the Indian telecom market.