S Tel, a joint venture between Siva Group of Chennai and Bahrain Telecom (Batelco), today announced an investment of Rs 700 crore for the acquisition of 3G spectrum and roll out of services.
The company will be paying Rs 338 crore to the Department of Telecom (DoT) for 3G spectrum in three circles--Bihar, Orissa and Himachal Pradesh--and the remaining fund would be invested to roll out 3G network, Shamil Das, CEO, S Tel said.
"We shall raise the funds in 1-1 debt-equity ratio. Of the Rs 700 crore investment, Rs 350 crore has been raised as debt from IDBI and the remaining would come as equity by Siva Group and Batelco," he added.
The company would pay the DoT within the stipulated time.
S Tel is currently offering mobile services in three circles--Bihar, Orissa and Himachal Pradesh--and claims to have over one million subscribers. The company has licence for three more circles of Assam, North-East and Jammu and Kashmir.
Das said mobile services are likely to be launched in Assam in the next 40-45 days followed by North Eastern region.
While in Jammu and Kashmir, it may take some time as spectrum is not available for the entire region.
"Our business strategy is aimed at making benefits of mobility accessible to a large section of the society in the six growth circles. Our commitment to consumers is entrenched in our company vision," he added.
S Tel's network is compliant with third generation standards and "we are well geared to keep pace with the adoption of this technology," he said.
