Sistema to contest Supreme Court verdict on 2G licence

By IANS,

New Delhi : Russian conglomerate Sistema Friday said it will seek legal remedies to safeguard its interests in India and the telecom operations under the joint venture with Shyam Telecom in the country will continue.


Support TwoCircles

“To safeguard its interests, Sistema and Sistema Shyam TeleServices Ltd (SSTL) will contest this order by pursuing all available legal remedies. In the meantime, Indian operations will remain business as usual for the company,” Sistema said in a statement.

Sistema-Shyam offers pan-India telecom services under the MTS brand.

The Supreme Court Thursday had cancelled 21 of the 22 licences held by its Indian arm Sistema Shyam TeleServices Ltd (SSTL).

“Sistema and SSTL are being penalized for acting in good faith and in reliance on the appropriateness of the procedures established by India’s telecommunications authorities. Sistema therefore looks forward to a clear, transparent and equitable policy decision on these matters by the Indian government,” it added.

According to the operator, it has invested over $2.5 billion in the Indian market and has over 3500 employees.

Sistema holds a 56.68 percent stake in the venture, while the Russian government holds 17.14 percent and the Shyam Group of India has another 23.98 percent. The remaining 2.2 is publicly owned.

The Supreme Court cancelled all 122 licences issued to telecom firms in 2008. However, the apex court has given four months’ time to the country’s telecom regulator to look into the matter and make recommendations for the fresh auctions.

SUPPORT TWOCIRCLES HELP SUPPORT INDEPENDENT AND NON-PROFIT MEDIA. DONATE HERE