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S Tel

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S Tel Private Limited
Company typeLimited
IndustryTelecommunications
FoundedJanuary 2008
DefunctFebruary 2012
FateLicense cancelled by the Supreme Court of India
ProductsGSM, GPRS, EDGE

S Tel Private Limited was a GSM based cellular operator in India. It was owned jointly by Chinakannan Sivasankaran. (51%) and Bahrain Telecommunications (49%).[1] On 2 February 2012 Supreme Court of India cancelled all 122 spectrum licences granted during the tenure of former communications minister A Raja. Six licences of S Tel were cancelled, and Batelco sold its stake in S Tel. The sale was completed in late 2012.[2]

Controversy

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License cancelled by Supreme Court

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Main article: 2G spectrum case

On 2 February 2012, The Supreme Court of India cancelled all 122 spectrum licences granted during the tenure of former communications minister A Raja, including the 6 licenses granted to S Tel.[3][4] The Supreme Court of India also imposed a fine of ₹ 50 lakh on S Tel.[5][6]

Batelco sells stake

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On 8 February 2012, a few days after The Supreme Court ruling, Batelco sold its 42.7% share of S Tel to Sky City Foundation Ltd of India for 65.8 million Bahraini dinar (US$174.5 million).[7][8] 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 S Tel for USD 174.5 million to its Indian partner, Sky City Foundation Limited".[3] The sale was to be completed by the end of October 2012.[9]

Current status

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S Tel services is no longer available in India following the cancellation of its six UAS licenses on 17 February 2012. On 29 February 2012 it was reported that S Tel boss Sivasankaran wrote to Manmohan Singh, former Prime Minister of India, demanding Rs. 1700 Crore investment while offering to surrender its licenses.[10]

References

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  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 (8 February 2012). "Batelco Exits Scam Filled Indian Telecom Market, Sells of Shares in STel". Telecomtalk.info. Retrieved 27 November 2013.
  3. ^ a b PTI (9 February 2012). "2G case: Batelco exits STel after SC order; sells stake for $175 mn - Economic Times". Articles.economictimes.indiatimes.com. Archived from the original on 29 October 2013. Retrieved 27 November 2013.
  4. ^ "Supreme Court quashes 122 2G licences awarded in 2008". DNA.
  5. ^ "2G scam: SC scraps 122 licences granted under Raja's tenure, trial court to decide on Chidambaram's role". The Times of India. 2 February 2012. Archived from the original on 29 October 2013.
  6. ^ "122 licenses Cancelled". Money Control. 2 February 2012.
  7. ^ "Batelco to Sell STel Stake to India's Sky City Foundation - Deal Journal India - WSJ". Blogs.wsj.com. 8 February 2012. Retrieved 27 November 2013.
  8. ^ "Batelco hangs up as SC blow hits home". DNA.
  9. ^ "Batelco exits STel; sells stake for $175mn - Business Today - Business News". Businesstoday.intoday.in. 8 February 2012. Retrieved 27 November 2013.
  10. ^ "2G verdict fallout: Return my Rs 1700 crore, S Tel boss Sivasankaran writes to Manmohan Singh - The Times of India". The Times Of India.
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