India's Sistema Shyam Teleservices (SSTL) has revealed it has reached break-even across the majority of its operations, as the company evaluates a merger with Reliance Communications.
SSTL, majority-owned by Russia's Sistema, is now operational income positive in six of its nine operating circles before accounting for depreciation and amortisation, the Economic Timesreported.
The operator is in the black in Tamil, Nadu, Delhi, Kolkata, Wes Bengal, Rajasthan and Karnakata. But it is yet to become obida positive in Uttar Pradesh West, Gujarat or Kerala.
SSTL CEO Dmitry Shukov told the publication that the company is pulling out all the stops to reach break-even in the remaining markets. The company's blended ARPU increased 20% between March 2014 and March this year, he said.
SSTL achieved break-even in the majority of its operating circles thanks to growing non-voice revenues, expanding geographical coverage and a recent cut in interconnection charges.
Earlier this month Reliance Communications confirmed it is in talks with Sistema over a stock swap merger with SSTL.
Sistema has been rumored to be considering exiting the Indian market for some time, and a merger would give Reliance access to valuable 850-MHz spectrum for its LTE rollout.