Sistema Shyam TeleServices Limited (SSTL) may still be able to continue operating in the Indian telecom space.
It is believed that the government may consider giving leeway to the operator, on grounds that it is a pure-play CDMA player.
So, in this context, SSTL may be considered an exception to the other operators lobbying for spectrum, as it was the only company that required CDMA spectrum.
Meanwhile, the Russian government continued its efforts in this context. Elvira Nabiullina, the Russian Minister of Economic Development reportedly met with Anand Sharma, Minister of Commerce, Industry and Textiles to discuss the issue. At the meeting, Sharma reportedly informed Nabiullina that the government had taken cognisance of the issue and had filed a review petition of the 2G case as well.
As per the Court?s verdict, Sistema stands to lose 21 telecom licences. Also, Sistema sent a formal notice to The Republic of India notifying it of a dispute under the Bilateral Investment Treaty (BIT) between the Government of the Russian Federation and the Government of the Republic of India.
The company opined that the cancellation of SSTL’s licenses following its investment into the Indian cellular sector is contrary to India?s obligations under the BIT, including obligations to provide investments with full protection and security and obligations not to expropriate investments.
The formal notice requests The Republic of India to settle the dispute relating to the revocation of SSTL’s 21 telecom licenses in an amicable way within six months.
Further, the notice states that if the dispute is not amicably resolved by August 28, 2012 Sistema reserves the right to commence proceedings against The Republic of India as provided in the BIT.
