Sistema Shyam hoping to sell IT infrastructure to IBM (Lead)May 21st, 2009 - 6:09 pm ICT by IANS
By Pupul Dutta
Kolkata, May 21 (IANS) Telecom operator Sistema Shyam Teleservices is planning to outsource a portion of its Internet infrastructure to global IT behemoth IBM, and hopes to sew up the deal some time next year, people aware of the development say.
Sistema Shyam, a joint venture company between Russia’s Sistema and India’s Shyam group, plans to outsource “a portion” of its IT infrastructure, an industry official told IANS requesting anonymity.
“This deal with IBM will materialise only by next year, it’s going to be a huge contract,” the official said, without spelling out the financial details.
Meanwhile, Sistema Shyam Thursday launched its CDMA services for the West Bengal circle, and said it would invest $150 million in this telecom service area over the next four years.
The company had earlier launched CDMA services in the Tamil Nadu, Kerala and Rajasthan circles.
“Our current investment in the state is approximately $80 million. We plan to invest around $150 million in the next three-four years,” said company president and chief executive Vsevolod Rozanov at the launch of the service here.
The company, which has earmarked $5.5-billion for investment in India, plans to spend about $600-700 million by the end of this year.
“We will complete the launch of 11 telecom circles by the end of 2009. For this we will invest approximately $600-700 million,” Rozanov told IANS.
Sistema Shyam was granted licences and spectrum last year to provide CDMA mobile services in 22 circles last year.
“We also plan to launch EVDO services (evolution data optimised) service by end of this year,” Rozanov said.
EVDO services enable a user to connect to the Internet faster.
Regarding the Russian government’s interest in acquiring a stake in the company, Rozanov said: “We are still in talks with the government. It will be somewhere close to 20 percent stake that the government is looking to acquire.”
According to him, the Russian government has set aside $670 million to infuse in the company.
Quizzed on when he expected to see Sistema Shyam breaking even, Rozanov said: “Not before three years.”
- Sistema Shyam launches CDMA services in Kolkata - May 21, 2009
- Russian Sistema's India unit to appoint banks for IPO - Mar 15, 2011
- Russia's Sistema to float public issue for Indian telecom arm - Aug 11, 2010
- Sistema Shyam to secure $200m Gazprombank loan - Dec 20, 2010
- Shyam Sistema launches CDMA services in Tamil Nadu - Mar 26, 2009
- Sistema Shyam to decide on IPO by year-end - Sep 06, 2010
- Sistema Shyam expects 10 mn user base by December - Mar 25, 2010
- Sistema Shyam launches mobile phone services in Tamil Nadu (Lead) - Mar 26, 2009
- SSTL reports quarterly loss of Rs.657.6 crore - Sep 07, 2011
- Sistema Shyam issues over 547 mn shares to Russian government - Mar 30, 2011
- Sistema-Shyam launches MTS in Gujarat - Dec 03, 2010
- MTS launches advanced broadband service - Sep 01, 2011
- Sistema Shyam's net loss narrows to Rs.528 crore - May 29, 2012
- MTS launches two Android phones for below Rs.5,000 - Aug 31, 2011
- Shyam Sistema CDMA services in Chennai, Kerala this month - Mar 23, 2009
Tags: anonymity, behemoth, company president, financial details, internet infrastructure, joint venture company, kerala, launch, mobile services, percent stake, rajasthan, rozanov, russian government, spectrum, tamil nadu, telecom circles, telecom operator, telecom service, teleservices, west bengal