New entrant, S Tel is set to invest Rs.700 crore towards payment for 3G spectrum as well as rolling out services. The company plans to raise Rs.338 crore through a 1:1 debt to equity ratio towards license fee payment for the three circles of Bihar & Jharkhand, Odisha and Himachal Pradesh.

The company said that the debt is already tied up with Indian nationalized banks via a bridge loan and is set to meet the timelines stipulated by DOT.

Commenting on the acquisition of the licenses, Mr. Shamik Das, Chief Executive Officer, S Tel said, “Our business strategy is aimed at making benefits of mobility accessible to a large section of society in the six growth circles. Our commitment to consumers is entrenched in our company vision. Despite being a new operator which has launched services in India in the last six months, we had aggressively bid for 3G spectrum and won licenses in three circles. We view 3G technologies as important elements for advancing socio-economic development, bridging the digital divide that exists in certain regions especially where tele density and Internet penetration are low. Strategically, our investment in 3G spectrum is targeted at being ready for all future services. Our network is compliant with third generation standards and we are well geared to keep pace with the adoption of this technology.”

Commenting on what 3G will mean for its customers in times to come, he added, “3G mobile connectivity has the potential to deliver essential and richer communication services (i.e. financial, healthcare, education, etc.) that benefit people at every tier of society. This technology will enable high-speed data transfer and enhance the user experience with bandwidth heavy services such as live video streaming and many other graphic formats.”

The initial capex will be valued at Rs.360 crore and will be spread over five years.

Speaking on the occasion, Mr. P. Swaminathan, Director, S Tel and President, Siva Group, said, "Securing 3G licenses in the three principal circles of Bihar, Orissa and HP in which S Tel's 2G services have been launched 5 months ago, highlights the long term strategic commitment of S Tel and the keenness of the partners, Siva Group and Batelco Group, to offer the best of services to their customers."

Batelco Group, Chief Executive Officer, Mr. Peter Kaliaropoulos stated, “After having launched its operations in record time, S Tel has achieved a new milestone by being part of the inaugural group of operators to have won 3G spectrum in India. Together with our partner in India, Siva Group, we aspire to make S Tel a significant and formidable operator in the country, the third largest and fastest growing mobile market in the world,” he added.