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The proposed merger of <keyword id="178358" type="COMPANY" weightage="100" keywordseo="Sistema-Shyam">Sistema Shyam</keyword> Teleservices Limited and <keyword id="46907" type="CITY" weightage="100" keywordseo="Reliance-communications">Reliance Communications</keyword> has been approved by the Competition Commission of India (CCI). Since 2009, this will be the first major amalgamation to happen in this intensely competitive sector. 
 
As per ET reports, Reliance Communications and SSTL were in talks for a possible takeover in an all-stock deal which is expected to be worth around Rs 4,500-5,000 crore. The deal would give SSTL’s shareholders a stake of around 10% in the merged entity. 
 
As per the deal, Reliance would have access to airwaves in the 850 Mhz band which will be most probably be used for its forthcoming 4G services. The validity of its licenses in eight high-revenue generating circles like Delhi, Gujarat, Karnataka and Tamil Nadu will also be extended by 12 years. SSTL, on the other hand, will get to be a part of a stronger company and will finally be able to expand its CDMA-based business. 
 SSTL is the Indian telecom unit of Russia's <keyword id="478745" type="COMPANY" weightage="100" keywordseo="Sistema-JSFC">Sistema JSFC</keyword>. 
 
<a href="http://www.odishanewsinsight.com/wp-content/uploads/2015/11/Reliance-Anil-Ambani.jpg">Image source</a>

RCom and SSTL merger gets CCI stamp

Reliance Communications and Russia's <keyword id="6368074" type="COMPANY" weightage="60" keywordseo="Sistema">Sistema</keyword> are considering the feasibility of a merger through a stock swap. 
 
"The discussions are indicative and non-binding in nature, and remain subject to due diligence, definitive documentation and approvals, as may be necessary," Reliance Communications said in a media statement on Monday. 
 
"There is no certainty that any transaction will result," the statement added. 
 
The Ambani-owned Reliance Telecom was earlier reported to be in talks on a possible takeover of SSTL, a unit of Russia's Sisterma JSFC, in an all-stock deal. 
 
Sistema Shyam has reportedly said it agrees with the Reliance’s official statement. 
 
(Image credit: Indiatimes)

Reliance Communications is looking to merge with Sistema
Shyam

In a major development, <keyword id="351012" type="PERSON" weightage="80" keywordseo="Anil-Ambani-owned">Anil Ambani-owned</keyword> <keyword id="46907" type="CITY" weightage="80" keywordseo="Reliance-communications">Reliance Communications</keyword> is planning to takeover <keyword id="6368074" type="COMPANY" weightage="80" keywordseo="Sistema">Sistema</keyword> Shyam Teleservices (SSTL) in an all-stock deal reportedly which could give the Russian-owned telco's shareholders less stake in the merged entity. 
 
However, Reliance Communications and SSTL, majority owned by Russia's Sistema JSFC, do not want to comment on the possible takeover. 
 
"Due diligence is currently on, and there is an effort to tie up details in the next two to three months," a person directly involved in the talks told the Economic Times. 
 
"The second phase of the deal, if it happens, may see Sistema (JSFC) infuse more funds to raise its stake in the new entity, which can be used for capex or pare debt," he said. 
 However, another person familiar with the developments said there's no certainty about the deal. "Talks are going on. The top leadership of both the companies have met, but there are a lot of variables at play," he said, adding "any deal will need legal clearances, in addition to a nod from the DoT (<keyword id="116246" type="ORGANIZATION" weightage="80" keywordseo="Department-of-Telecommunications">Department of Telecommunications</keyword>)." 
 
According to Sistema, the company had held talks with other telecom operators in India, including Reliance Communications, for business expansion. 
 Sistema JSFC holds nearly 57 % in Sistema Shyam, which offers telecom services under the <keyword id="510271" type="UNKNOWN" weightage="80" keywordseo="MTS-brand">MTS brand</keyword> using <keyword id="218695" type="TECHNOLOGY" weightage="80" keywordseo="CDMA-technology">CDMA technology</keyword> in nine of India's 22 service areas to nearly nine million subscribers. Other shareholders include the Russian government with over 17 % and <keyword id="124887" type="CITY" weightage="60" keywordseo="Shyam-Group">Shyam Group</keyword>, the Indian promoters of SSTL, holding 24 %. Minority shareholders own the rest. 
 
Sistema entered India in 2007. In 2008, the joint venture was awarded licences and spectrum to offer telecom services in all of India's 22 circles using CDMA technology. Sistema gradually raised its stake in the joint venture. 
 
(Image: Indiatimes)

Reliance Communications is eyeing Sistema Shyam Teleservices

<a href="http://www.businessinsider.in/searchresult.cms?query=Reliance+Communications">Reliance Communications</a>, Sistema Shyam Teleservices and Aircel together is not only likely to have a 3G footprint that is bigger than those of <keyword id="15492" type="CITY" weightage="20" keywordseo="Vodafone">Vodafone</keyword> and <a href="http://www.businessinsider.in/searchresult.cms?query=Idea+Cellular">Idea Cellular</a>, analysts say, but is also expected to have 4G presence in eight circles. 
 
This comes after Anil Ambani-controlled RCom and Aircel on Tuesday announced exclusive 90-day merger talks to combine their wireless businesses under a newly listed Rs 35,000 crore entity, barely a month after RCom, India's fourth-largest carrier, and the Indian unit of Russia's Sistema JSFC announced an all-stock merger. 
 
Brokerage IDFC however pointed out one problem in the setup. It said the combined wireless operations of "RCom, Sistema Shyam and <a href="http://www.businessinsider.in/searchresult.cms?query=Aircel+">Aircel </a>would have a formidable 12 per cent revenue market share, but the debt burden of both RCom (Rs 39,900 crore) and Aircel (Rs 20k-to-24k crore range) could be a possible deal breaker." 
 Meanwhile, in a note to clients, <keyword id="6361649" type="CITY" weightage="20" keywordseo="Goldman-Sachs">Goldman Sachs</keyword> said on Wednesday: "A combined entity could offer 3G services in 18 circles, launch <keyword id="6493730" type="UNKNOWN" weightage="20" keywordseo="4G-services">4G services</keyword> on the 2300 MHz band in eight circles and hold 2G spectrum in 22 circles." 
 
The US brokerage noted that the potential combine would "breach overall spectrum caps in Tamil Nadu, West Bengal and Jammu &amp; Kashmir. Operators are not allowed to hold more than 25% of the total spectrum in a circle. People familiar with the matter said the new entity may surrender excess airwaves.” 
 
(Image credits: BCCL)

RCom, Aircel, SSTL merger likely to create strong number 4 after Airtel,Vodafone, Idea

In a long debated war over net neutrality, Sistema Shyam Teleservices better known as MTS, has emerged as the first telecom operator to openly break ranks with peers by encouraging subscribers to make national and international long-distance calls using any OTT (over the top) voice services app, be it Skype, WhatsApp, Viber, Google Chat, Messenger or Facebook. 
 
While Bharti Airtel, Vodafone India and Idea Cellular are battling OTT voice service providers, which they fear will impact the voice, this move by Indian unit of Russia's Sistema JSFC is certainly a big news for the people opting for this kind of communication. 
 
A highly placed source in Sistema Shyam executive said that the CDMA operator's subscribers would pay 50-75% less for national and international Internet calls using VoIP apps, compared with similar calls made on regular mobile networks. The move is aimed at bolstering the company's voice-centric data services business model. 
 
Lately, Sistema Shyam has been focusing more on data services, with more than 55% of its quarterly revenue stemming from the non-voice business. The latest emphasis on Internet calling plans is aimed at growing its data earnings and hedge potential revenue expansion risks by virtue of the company's airwave holdings in just nine circles, especially since it didn't buy CDMA airwaves in the 800-MHz band in the March 2015 spectrum sale. 
 
"Sistema Shyam doesn't support any discrimination when it comes to Internet services, and our latest plans give customers the freedom to use data purely for Internet calls if they wish," said the executive. 
 
In July, a telecom department panel on net neutrality proposed regulating local and national long-distance calls made using OTT voice apps like Skype, Viber, WhatsApp and Google Chat to create a level playing field between telcos and OTT providers. 
 
But a Sistema Shyam executive said "the recommended restriction on domestic long-distance calls made using VoIP services," would only apply "to Internet service providers", and not regular mobile operators holding unified licences. Sistema Shyam plans to offer Internet calling service as a unified permit holder, which allows it to offer various communication services, including 4G, on the spectrum it holds. 
 
Amid the net neutrality debate, Sistema Shyam had in August openly took a stance against established telcos such as Bharti Airtel and objected to zero-rating tariffs.

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RCom and SSTL merger gets CCI stamp

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Reliance Communications is looking to merge with Sistema Shyam

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Reliance Communications is eyeing Sistema Shyam Teleservices

BI India Bureau

RCom, Aircel, SSTL merger likely to create strong number 4 after Airtel,Vodafone, Idea

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Good news in net neutrality debate: MTS rolls out plan for Skype and Whatsapp calls

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You Searched For "Sistema JSFC" and got 5 results

RCom and SSTL merger gets CCI stamp

BI India Bureau

Reliance Communications is looking to merge with Sistema Shyam

BI India Bureau

Reliance Communications is eyeing Sistema Shyam Teleservices

BI India Bureau

RCom, Aircel, SSTL merger likely to create strong number 4 after Airtel,Vodafone, Idea

BI India Bureau

​Good news in net neutrality debate: MTS rolls out plan for Skype and Whatsapp calls

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Good news in net neutrality debate: MTS rolls out plan for Skype and Whatsapp calls