Sistema Ad Hoc Notice On The Indian Supreme Court Decision
The order was issued on the grounds that these licenses were not granted in accordance with required procedures by the Department of Telecommunications. The court has further directed the Telecom Regulatory Authority of India (TRAI), India's top telecom regulatory body, to make fresh recommendations on the granting of 2G licenses and the re-allocation of spectrum via auction within four months by the Department of Telecommunications (DOT).
Sistema, by way of its investments in SSTL, has fully demonstrated its commitment to its Indian operations and is very disappointed by the Supreme Court's decision. In essence, Sistema and SSTL are being penalised 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.
To safeguard its interests, Sistema and SSTL will contest this order by pursuing all available legal remedies. In the meantime, Indian operations will remain business as usual for SSTL, a national telecom operator serving more than 15 million customers, employing over 3500 employees, and with investments of over US$ 2 billion
About Sistema Shyam TeleServices Ltd.
Sistema Shyam TeleServices Ltd. (SSTL) is a venture, involving equity participation by Sistema (LSE: SSA) of Russia, the Russian Federation and the Shyam Group of India. Sistema is the majority shareholder in the company which operates its telecom services under the MTS brand. MTS is well recognized in India and worldwide for its commitment to high quality and innovative telecom solutions. MTS has recently been ranked by Millward Brown as 80th most valuable brand in the world. In a short span of time, MTS in India has secured over 15 million wireless subscribers and under the MBlaze brand provides mobile broadband services to more than 1,200,000 customers in over 200 cities across the country.
For further information, please visit www.sistema.comor contact:
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Sistema is the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the company reported revenues of US$ 9.0 billion for the third quarter of 2011, and total assets of US$ 42.7 billion as at September 30, 2011. Sistema's global depository receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the symbol "AFKS" on the MICEX-RTS Stock Exchange, and under the symbol "SIST" on the Moscow Stock Exchange (MSE). Sistema was ranked number 342 in the 2010 edition of the Fortune Global 500 list. Website: www.sistema.com
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