S Tel

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S Tel Private Limited
Type Limited
Industry Telecommunications
Headquarters India
Products Mobile
Telecommunication operator
Parent Siva Group
Website www.stel.in

S Tel Private Limited is a GSM based cellular operator in India. It has a unified services access license in Orissa, Bihar, Himachal Pradesh, North East, Assam and Jammu & Kashmir. It is owned jointly by C Sivasankaran (51%) and Bahrain Telecommunications (49%).[1] On 2 February 2012 Supreme Court of India quashed all 122 spectrum licences granted during the tenure of former communications minister A Raja. Six licences of S Tel were cancelled and this prompted Batelco to sell off its entire stake from S Tel. This move makes Batelco the first foreign operator to exit India following the 2G spectrum scam. The agreed time frame for completion of the sale is the end of October 2012.[2]

S Tel operates in 6 Category C circles – Orissa, Bihar, Himachal Pradesh, North East, Assam and Jammu & Kashmir. These licenses enable the company to provide Unified Mobile service, wireless broadband and innovative Value Added Services (VAS) covering a population of over 226 million across these circles. S Tel has approximately 3.6 million subscribers as of February 2012.

Headquartered in NCR (National Capital Region)of India, the company plans to launch its mobile telephony service in India before close of 2009. Siva Group is a USD 3 billion group (about Rs.14,000 crores), with diversified business interests in verticals such as wind energy, shipping & logistics, hospitality & realty, media, EPC, education and agro business.

History[edit]

STel won 2G licences in six circles in January 2008. The circles were Assam, North-East, Bihar, Orissa, Himachal Pradesh and Jammu and Kashmir.[3] Batelco acquired a 42.7 per cent stake in STel for Rs 875 crore in June 2008, valuing the company at over Rs 2,000 crore. In September of the same year, Batelco acquired another 6.3 per cent for Rs 125 crore.[4]

License quashed by Supreme Court[edit]

Main article : 2G spectrum scam On 2 February 2012 Supreme Court of India quashed 122 spectrum licences granted during the tenure of former communications minister A Raja, including the 6 licenses granted to S Tel.[5] Supreme Court of India also imposed a fine of INR 50 lakh on S Tel.[6][7]

Batelco sells stake[edit]

On 8 February 2012, a few days after the Supreme Court ruling, Batelco, which holds a 42.7% stake in the STel Pvt Ltd (STel), announced that it had agreed to sell its entire holding to its Indian partner Sky City Foundation Ltd for 65.8 million Bahraini dinar (US$174.5 million)[8][9] Batelco's Group Chief Executive Shaikh Mohamed bin Isa Al Khalifa said in a statement, "BMIC Limited, a 100 per cent Batelco-owned subsidiary company, entered into an agreement, in the fourth quarter of 2011 to sell its 42.7 per cent stake in STel for USD 174.5 million to its Indian partner, Sky City Foundation Limited".[3] The agreed time-frame for completion of the sale was the end of October 2012.[10]

Current Status[edit]

On 29 February 2012 it was reported that S Tel boss Sivasankaran wrote to Manmohan Singh, prime minister of India, demanding former's Rs. 1700 Crore investment while offering to surrender 2G and 3G licenses.[11]

There is a Tender Notice for Sale of Movable Assets on December 9, 2013 by IDBI Trusteeship Services Ltd.

References[edit]

  1. ^ Dave, Sachin (20 June 2009). "Sivasankaran acquires control of S Tel". India Times - Economic Times (India Times). Retrieved 25 January 2010. 
  2. ^ Biswas, Rudradeep (2012-02-08). "Batelco Exits Scam Filled Indian Telecom Market, Sells of Shares in STel". Telecomtalk.info. Retrieved 2013-11-27. 
  3. ^ a b PTI Feb 9, 2012, 03.11AM IST (2012-02-09). "2G case: Batelco exits STel after SC order; sells stake for $175 mn - Economic Times". Articles.economictimes.indiatimes.com. Retrieved 2013-11-27. 
  4. ^ Our Correspondent (2010-01-15). "The Telegraph - Calcutta (Kolkata) | Business | Bahrain firm to buy STel stake". Telegraphindia.com. Retrieved 2013-11-27. 
  5. ^ "Supreme Court quashes 122 2G licences awarded in 2008". DNA. 
  6. ^ "2G scam: SC scraps 122 licences granted under Raja's tenure, trial court to decide on Chidambaram's role". Times of India. 2 February 2012. 
  7. ^ "122 licenses Cancelled". Money Control. 2 February 2012. 
  8. ^ "Batelco to Sell STel Stake to India’s Sky City Foundation - Deal Journal India - WSJ". Blogs.wsj.com. 2012-02-08. Retrieved 2013-11-27. 
  9. ^ "Batelco hangs up as SC blow hits home". DNA. 
  10. ^ "Batelco exits STel; sells stake for $175mn - Business Today - Business News". Businesstoday.intoday.in. 2012-02-08. Retrieved 2013-11-27. 
  11. ^ "2G verdict fallout: Return my Rs 1700 crore, S Tel boss Sivasankaran writes to Manmohan Singh - The Times of India". The Times Of India. 

External links[edit]