SSTL to scale down its operations in five regions to cut costs

Sistema Shyam Teleservices Limited (SSTL) is likely to reduce its voice operations in Bihar, Uttar Pradesh East and West, Gujarat and Haryana.

The operator’s move is aimed at reducing costs and re-allocating its resources to promote its more lucrative data services business in the country.

The operator’s decision to scale down business in five regions is expected to result in job losses for the employees.

SSTL’s move to scale down its voice business has come in the wake of the operator informing the Department of Telecommunications that it is facing losses of $50 million every month following the cancellation of its licences by the Supreme Court early this year.

Earlier, SSTL had decided against expanding its operations in the country with a view to contain its cash outflows, following the operator’s second quarter losses in June, 2012 widening to 80 per cent.

The operator has also decided not to participate in the forthcoming 2G spectrum auction.