STel, the youngest telecom operator to have bagged 3G licenses in the recent spectrum auctions in India, today announced its plans to invest Rs. 700 crores for acquisition of 3G spectrum and roll out of services.
The company plans to raise Rs. 338 crores through a 1:1 debt to equity ratio towards license fee payment for the three circles of Bihar & Jharkhand, Odisha and Himachal Pradesh.
S Tel is the only new operator to have bid consistently and won 3G spectrum at a high success rate, leading to acquisition of licenses in all three circles of its current operations.The debt is already tied up with Indian nationalized banks via a bridge loan and the company is set to meet the timelines stipulated by DOT.
Commenting on the acquisition of the licenses, Mr. Shamik Das, Chief Executive Officer, S Tel said “Our business strategy is aimed at making benefits of mobility accessible to a large section of society in the six growth circles. Our commitment to consumers is entrenched in our company vision. Despite being a new operator which has launched services in India in the last six months, we had aggressively bid for 3G spectrum and won licenses in three circles.
He also said “We view 3G technologies as important elements for advancing socio-economic development, bridging the digital divide that exists in certain regions especially where tele density and Internet penetration are low. Strategically, our investment in 3G spectrum is targeted at being ready for all future services. Our network is compliant with third generation standards and we are well geared to keep pace with the adoption of this technology.”
Talking about the company’s future investment plans, Mr. Shamik Das, Chief Executive Officer said, “S Tel will invest approx Rs. 360 crores in capital expenditure over the next five years to roll out 3G services in Bihar & Jharkhand, Odisha and Himachal Pradesh. We are presently working out details for raising this sum and are in talks with potential lenders.”
Batelco Group, Chief Executive Officer, Mr. Peter Kaliaropoulos stated, “After having launched its operations in record time, S Tel has achieved a new milestone by being part of the inaugural group of operators to have won 3G spectrum in India. Together with our partner in India, Siva Group, we aspire to make S Tel a significant and formidable operator in the country, the third largest and fastest growing mobile market in the world,” he added.
In November 2009, S Tel achieved financial closure for its Rs. 2000 crore telecom project and was the first amongst the new operators to do so. Last month, the company became the fastest mobile operator in India to clock the 1 million mark in ‘C’ circles, having achieved the milestone in just 90 days of operations.
ashis August 10, 2010 at 3:17 pm
it is really strange how a mobile company can launch 3g without having gprs
rajiev June 21, 2010 at 9:21 am
@Shayanta
yeh aditya chopra kaun hai, kahin adiya birla ke baare mein baat to nahi kar rahe?
Arjun.C June 21, 2010 at 8:25 am
BEFORE LAUNCHING S-TEL SHIVASHANKARAN WAS A DIRECTOR OF AIRCEL LIMITED.
IG June 20, 2010 at 11:43 pm
@Shayanta
what is the need of promoting ad as they d not have presence in most of crs…………instead of acquring 3g license they should have concentrated on expanding its network and offered good call rates…………………………………..
Shayanta June 20, 2010 at 11:32 pm
S tel ne Aditya Chopra banne ka faisla liya kya, national tv me koi ad nehi. No updates in TT also, news me v kabhi iska naam nehi bolte. Akela aisa telco jisne itne competition me v gprs nehi launch kiya, upar se 3g ka license v kharida he. Dekhte he bina gprs ke kaun ise apnata he.
Shayanta June 19, 2010 at 9:48 am
S Tel may launch in Assam in this month or early July, I confirmed it from their CC. 9127012345-assam.
Shayanta June 18, 2010 at 12:53 pm
S Tel first of all expand ur reach to the remaining circles then think of 3g.
Shayanta June 18, 2010 at 12:51 pm
As bcoz Stel is not having pan india license & spectrum
TUFAN June 2, 2010 at 7:15 pm
@kaushik
mai toh use karunga S Tel ka 3G…………..jaldi se jharkhand me 3G launched karo yaar……
dUaNe May 28, 2010 at 10:11 pm
@MaNoJ
Its all about the MONEY, honey!!
>>Why S-Tel is not expanding its network in PAN india!!!
MaNoJ May 27, 2010 at 9:54 am
Why S-Tel is not expanding its network in PAN india!!!
Sameer From Kashmir May 27, 2010 at 12:22 am
S Tel we need u in Kashmir Cum Fast and launch here ur service……… Try mar ke tao dekho bohat acha market hai but start with good service bcoz yaha ke log achi service ke peche baagte hai.
rajiev May 26, 2010 at 7:18 pm
accha hai shayad tarrif war yeh hi shuru kar de
Abijit Dhir Deo May 26, 2010 at 6:56 pm
Every player has mostly paid the double amount that estimated as license fee. So, it will led to high pricing of 3G services. Let’s see what strtategy the operators are going to adopt.
emad May 26, 2010 at 4:36 pm
bye-bye
emad May 26, 2010 at 4:34 pm
mujhe stel se koi ummeed nahi wo bechara himachali……
kaushik May 26, 2010 at 4:33 pm
best yahi hoga agar yeh network expansion mein 700 crore lagaye rather than wasting 700 crore on 3G
without netwprk no one will use 3g of Stel
Keshav Jha May 26, 2010 at 4:26 pm
Stel se mujhey kafi ummeedein hain. 3G mein bhi stel ka tarrif jaroor sabse sasta hoga. Jaise ki 40p/min std ka plan stel ko chhod kar kisi mein nahin hai.