MTS sees tariffs stabilise at current levels

CHENNAI: Tariffs haven’t seen significant decline in the last few months and this trend may well continue in the near future, according to Sistema Shyam teleservices president & CEO Vsevolod Rozanov.

“We haven’t seen significant price decline over the last few months and this stage we don’t have a fear that the storm is coming.The tariffs have stabilized at this level. I do believe there is further room for decline but I don’t think it is happening now and I don’t think it is happening in the future,” Mr Rozanov said.

Mr Rozanov was in Chennai on Thursday for the launch of a green data centre, which would support business needs of MTS customers across India. MTS plans to launch more such Data centers and the next on the anvil is one in Noida.

Talking about 3G auctions and why MTS decided to stay out, Mr Rozanov said, “Unfortunately, there is no path for CDMA operators for 3G auctions. So, we didn’t even debate this.” But he ruled out any disadvantage that the company would face as a result of this in the near term.

“I don’t think there would be strong disadvantage for next 3-5 years because the market is voice predominantly. So, its more of a long term strategy.”

Sistema Shyam is also planning to hit the markets this year with an initial public offering. Mr Rozanov said that the company has started the process and it might take another six months. “Sometime, around the beginning of Q4 we should be ready for listing.” he said. However, no details were available on the amount that the company plans to raise from the market.