0		Sistema, launches, services, Chennai, under, MTS, name., Offers, million, minutes, free, talk, time

Sistema Shyam Teleservices Ltd (SSTL) a joint venture between Russia’s Sistema and India’s Shyam Telecom has launched its CDMA operations in Tamil Nadu under the brand name of MTS -Mobile TeleSystems.

MTS got the license for all the 22 circles and has started its operations in Rajasthan under the brand name of Rainbow.

74% owned by Russia based Sistema and 26% by Shyam telecom. Brand of MTS - Mobile TeleSystems is a well known brand across the world. MTS is the 8th largest mobile operator in the world. Sistema just wants to ride on that brand. It will re-brand its Rajasthan services which are operating under the name of Rainbow.

Since it is new it really wouldn’t matter on what brand it wants to services. Indian consumers are always on the  look out for differentiation. With the offer of 1 million free minutes for lifetime MTS might have generated enough interest already. These minutes are capped at 150 minutes per day. The offer is valid for a limited period. MTS is offering pre-paid services only.

With 91 million subscribers Sistema is the largest cellular companies in Russia and 8th largest in the world. It has announced a $5bn of investment in India of which $2bn is already spent in acquiring spectrum and laying out infrastructure. Russian government is close to picking up a 20% stake in Sistema Shyam Teleservices Ltd for $700 million.

Shyam Sistema Teleservices Ltd (SSTL) combine made a smart move by opting for CDMA service and got the spectrum with a relatively less waiting time. MTS will the 3rd CDMA operator in the country after Reliance Communications and Tata Indicom.

I am still pondering over the 1 million minutes of free talk time. Did someone say that these are exciting times for India? You betcha.

Find more details at MTS India’s website.