Indian mobile network operator S-Tel has become the first casualty of the Supreme Court’s decision to revoke 122 licences amid the 2G scam scandal.
Local newspapers report that the company, which is number 12 in the country, is scaling down its…
Indian mobile network operator S-Tel has become the first casualty of the Supreme Court’s decision to revoke 122 licences amid the 2G scam scandal.
Local newspapers report that the company, which is number 12 in the country, is scaling down its operations and may even cease its activities because of difficulties in reaching profitability.
This is partly confirmed by S-Tel, which published a statement on its website saying that its subscribers could exercise the mobile number portability (MNP) option available to them.
S-Tel had already suffered a first blow when Bahrain Telecommunications Company (Batelco) announced in early February that it would divest its 42.7% stake in the Indian company.
The sale “is a part of an earlier understanding with its Indian partner to exit, given the circumstances surrounding the 2G probe in India over the past twelve months,” Batelco stated.
The 42.7% stake will be sold to Batelco’s Indian partner Sky City Foundation for US$174.5m, the price paid by Batelco in 2009 when it bought the S-Tel stake.
S-Tel has licences to operate in six of India’s 22 circles. Its customer base is estimated at 3.6 million compared with 175 million for Bharti Airtel, India’s largest mobile operator.
