Siva’s S Tel on the verge of closing down

Company admits finances hard to come by,advising customers to switch using portability option.

Written by ENS Economic Bureau | Mumbai | Published:February 22, 2012 1:59 am

S Tel Pvt Ltd, part of the $ 3 billion Siva group promoted C Sivasankaran,is on the verge of closing the telecom business as the Supreme Court verdict on the 2G case cancelling 122 licenses has led to its business becoming unviable.

S Tel held licences in Assam,North-East,Bihar,Orissa,Himachal Pradesh and Jammu and Kashmir and the company is estimated to have a subscriber base of around 36 lakh.

The company has admitted that bank funding is unlikely to come and has asked its customers to go for mobile number portability (MNP).

“Our infrastructure and media vendors have intensified disconnection of services,since the passing of the judgment by the Supreme Court,considering that there is now no chance of the banks disbursing funds,” the company said in an email statement,responding to queries from The Indian Express.

“S Tel has been ascertaining with its advisors,the steps that could be taken to address the customer pain arising out of such a force majeure kind of effect created by the unfolding scenario,” the company said.

The company is now advising its customers to move out using the MNP process.

“We have now implemented a web based UPC code generation facility whereby the subscriber can log on to S Tel’s website and generate UPC codes online from February 21 onwards. When this code is made available to the operator the subscriber chooses to move to,they will be able to port out. Necessary communication has already been issued to the MNP Service Providers to ensure that port outs are seamlessly carried out for the benefit of subscribers who choose the MNP option,” the company said.

On the issue of getting back into the business,the company said,“taking part in the auction,will be decided by S Tel’s board after evaluating the final recommendations by TRAI with regard to the auction.”

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