MTS Q3 loss shrinks to Rs 495 crore

Sistema Shyam, which operates under the brand name of MTS, has shrunk its net loss to Rs 495 crore for the third quarter ended September 30. The company had posted a net loss of Rs. 1,009.7 crore in the same period a year ago. The company's gross revenue is up by 23% to post Rs 404 crore compared to Rs 328.2 crore a year ago.

The revenue of the company, however, declined by 3 per cent from its previous quarter revenue of Rs. 417.7 crore.

The telecom firm that is majorly owned by Russian Conglomerate Sistema JSFC attributed this quarterly dip in revenue to "continued effect of TRAI changes in tariff structure" and "slowdown in subscriber acquisition activity".

'The revenues declined for the first time since the start of the Company’s operations. The subscriber growth during the quarter also suffered on account of uncertainties in the operating environment and due to the predatory practices adopted by competition. Going forward, the plan includes to continue our focus on driving operational efficiencies. In addition, the Company’s immediate priority is to look at the outcome of its curative petition filed in the Honorable Supreme Courts,' Vsevolod Rozanov, President and CEO of SSTL said.

The Supreme Court on February 2 had canceled 21 licences of SSTL along with 101 other permits that were issued during tenure of then Telecom Minister A Raja in 2008. The company offers CDMA technology based mobile telecom services in the country.

The company was allowed to participate in recent spectrum auction to continue its operations but it opted out of it and instead filed a curative petition challenging cancellation of its licenses.