OREANDA-NEWS. On January 15, 2007 Sistema (LSE: SSA), the largest  public diversified corporation in Russia and the CIS, which manages  fast growing companies operating in the consumer services sector,  announced that its Indian subsidiary, Shyam Telelink Ltd.  ("the Company"), has been awarded unified telecommunication licenses for provision of fixed-line and cellular services in 21 Indian  circles, reported the press-centre of Sistema.

As a result, the Company will hold licenses, including the licenses already obtained in the state of Rajasthan, covering the whole of India.

Sistema, the Company's shareholder, has guaranteed US$ 520 million of the total US$ 630 million to be paid for obtaining the licenses. The signing of license agreements and obtaining relevant frequencies from the Indian Department of Telecommunications will be finalised in accordance with Indian regulations. The timing of frequency allocation has not been determined and it is not defined when the frequencies will be assigned.

In September 2007, Sistema acquired a 10% stake in Shyam Telelink Ltd., followed by signing a share purchase agreement in October 2007 for the acquisition of an additional 41% stake. As a result, Sistema will own 51% stake in Shyam Telelink Ltd.

Alexander Goncharuk, President and Chief Executive Officer, commented: "Shyam Telelink met our expectations and received telecommunication licenses covering the whole of India. We consider India as one of the most attractive markets with a high growth potential. Our plans, as a strategic investor, include building national telecommunication network and providing our Indian customers with modern telecommunication services."