Sterling to stay fixed on wireless business

Sterling Infotech Group will continue with its focus on various wireless business initiatives including global system mobilephone (GSM) businesses in north and east India with specific thrust on penetrating rural markets, chairman of the company C Sivasankaran said yesterday.

He was speaking at the formal announcement of Hutchison Essar's acquisition of Aircel Ltd and Aircel Cellular Ltd (together Aircel) from Sterling Infotech.

The two groups are in the process of making the necessary application to seek approval from the Department of Telecom.

This will be the first intra-circle merger transaction since the announcement of the intra-circle merger guidelines.

Aircel operates GSM 900 cellular licences in Tamil Nadu. Aircel had over 1.1 million subscribers as on May 31, 2004.

The acquisition is subject to approvals from the concerned authorities. Hutchison Essar already operates a GSM 1,800 licence in Chennai.