Sistema Shyam TeleServices has signed a $70-million loan agreement with the Bank of China for nation-wide expansion of its mobile network.

According to a company official, Sistema Shyam would invest the loan amount to source supplies from telecommunications equipment provider ZTE and network services to build-out the CDMA network. Further, the company official reported that the loan would be significant in supporting SSTL to expand its geographical reach and serve the growing subscriber-base.

The loan is for 8 years with three-year moratorium on principal repayment.

It should be noted that Sistema Shyam, a joint venture between Russian firm Sistema and Indian Shyam Group, is a new entrant having license to operate in all 22 telecom circles in India. It currently, serves over 1.35 million subscribers across six circles of India, including Tamil Nadu, Kerala, Rajasthan, Kolkata, West Bengal and Bihar.