Dot Asks S Tel To Stop Services On Security Concerns

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#1 Himanshu Singh

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Posted 05 March 2010 - 09:23 PM

S Tel, a joint venture between Chennai-based Siva Group and Bahrain Telecom (Batelco), has been directed to immediately stop its mobile services in Himachal Pradesh, Bihar and Orissa, citing national security concerns.

The company has licences for Himachal Pradesh, Orissa, Bihar, Jharkhand, Jammu and Kashmir and Assam circles but is operational only in the three circles. The company has a user base of over eight lakh. Sources in the Department of Telecom said the company has been asked to stop services in all these three states.

Batelco, which has 42.7 per cent stake in S Tel, has entered into a partnership with Bahrain-based Islamic investment bank Global Banking Corporation, which in turn will acquire 11 per cent stake in S Tel for $50 million. GBC buying 11 per cent in S Tel will indirectly raise Batelco's stake in S Tel by 6.3 per cent to 49 per cent.

When contacted, the company confirmed of having received an order asking to stop "voice and SMS services" till further clarification.

"We have received the letter. We are also surprised by this kind of letter especially after the government gave us permission on December 11 and 21 last year to launch services," P Swaminathan, Director, Siva Group said.

"We are trying to ascertain specific facts which are behind the national security concerns," he said.

S Tel is sharing the whole infrastructure with existing operators and has decided not to put up any tower of its own.

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#2 ::Hitesh::

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Posted 06 March 2010 - 02:10 AM

there should be some solid reasons for the orders !

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#3 techlive

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Posted 06 March 2010 - 05:27 AM

related to National Security , this going to be serious matter....

#4 srk006

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Posted 06 March 2010 - 08:11 AM

How on earth can DoT order a company to stop operation one fine day; without any notice period. Isn't DoT properly studying the company before granting license.

#5 gulshan_sawhney

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Posted 06 March 2010 - 08:15 AM

seriously, is this some kind of joke or what ?? :angry:

hw can you put the users of the operator in such a poor condition, as in till they are not allowed to restart their services, is DOT gonna provide them free numbers or what.. sometimes DOT is a joke really :Confuso:

hope, this has nothing to do with that stupid thingy, the equipment being chinese or smthng lyk tht.. Posted Image

Looks like it is the starting of the end of schemes & offers in the telecom circle here in India..

As it is said, all good things do come to and end.. I guess this is just the same happening hereon.

I just hope that the tariff's don't rise if they can't fall further though. We are used to such low tariff's now that even a few paise rise would seriously create issues..

#6 ipkonfig

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Posted 06 March 2010 - 08:59 AM

Even I am appalled by this news. But I guess DoT can play big brother only with new entrants. I wonder about the plight of those who opted for the services of STel.

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#7 ravi_patent

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Posted 06 March 2010 - 01:28 PM

S tel has taken DOT to court and got a favourable decision.. DOT is now showing who is more powerfull

#8 me_saket

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Posted 06 March 2010 - 06:08 PM

Either serive will restart within week,
Or it will take another 5-6month to start.

I think so

Let's see.

Waiting for MTS launch

#9 igloo

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Posted 06 March 2010 - 06:28 PM

May be they have not paid monthly bribe to Dot babus

Security concern is BS.

#10 srk006

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Posted 06 March 2010 - 08:17 PM

Any Stel customers here? Has STel shut off their network today?

#11 savramesh

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Posted 10 March 2010 - 05:19 PM

DoT wins battle of upmanship, S Tel says may not pursue more licences

New entrant, S Tel said on Tuesday that it may not pursue more licences in the remaining 16 circles of India. The move coincides with the DoT asking the company to stop offering mobile services last week.

In a letter to DoT, S Tel says that it is reviewing its strategy for licences in the remaining 16 circles due to a combination of factors such as the emergence of several new players, hyper competition, the fact that several existing players have not been allotted airwaves and evolution of new technologies such as 3G and 4G.

S Tel executives had met Communications Minister A Raja on Monday to resolve the stand-off.

S Tel has licences to offer mobile services in 6 circles. It had applied for these 6 circles before September 25, 2007. The DoT had issued a press release notifying that September 25, 2007 will be considered as last day for applying for new 2G licence instead of earlier announced date of October 01, 2007. This decision was challenged by S Tel in Delhi HC.

The Delhi HC too had ruled in favour of S Tel. The case was then taken up to the Supreme Court by DoT and is scheduled for hearing this month.

The Delhi HC’s order had already caused a huge embarrassment to DoT as it actually questioned the Ministry’s decision to act arbitrarily. The issue is again related to DoT’s controversial decision of granting new 2G licences by resorting to favouritism.

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