MTS Offers Freebies to Retain Customers

In an effort to retain customers post the recent cancellation of its 21 licenses by the Supreme Court, Sistema Shyam TeleServices Ltd. has taken up several initiatives. (See 2G Verdict: SC Cancels 122 Licenses and 2G Verdict: An Easy Exit Route or Fresh Troubles?)

"MTS customers will now be able to make unlimited MTS to MTS local and national calls at a rate as low as zero paisa. Additionally, customers availing Super Zero can also enjoy free local and national SMSs. Super Zero comes with the choice of daily, weekly and monthly offerings," says a company statement.

MTS has around 15 million subscribers in the country. It has invested around US $2.5 billion in India operations.

The incumbent operators are already trying to lure away the subscribers of the affected operators like MTS, Uninor and Etisalat DB Telecom India PVT Ltd. In this scenario, the affected operators have little option but to come out with strategies to retain existing subscribers. MTS's new scheme seems to be an effort in this direction.

The Russian government holds 17.14 percent in MTS India while Sistema holds 56.68 percent. The Shyam Group owns 23.98 percent and the rest is publicily owned.

There is an uncertainty in the minds of consumers post cancellation of the 122 licenses. The affected players would have to take concrete steps to retain their subscribers. Besides, with incumbents planning to increase tariffs, one hopes that some of the greenfield operators will continue to exist in the Indian subcontinent. Their presence would ensure that the tariffs don't rise exorbitantly.

In the midst of all the speculations, MTS has told its employees that there will be no job cutting in the company and that it will continue to run its operations the way it was prior to the Supreme Court verdict.

Gagandeep Kaur, Editor, Light Reading India