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Indian mobile start-up STel raises $430m
09 November 2009
Bahrain’s Batelco is contributing towards $430 million raised to start a new Indian operator, STel, which plans to launch in six areas before the end of 2009. STel has made no announcements about technology
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STel
Batelco
Siva
India
Bharti
Vodafone
Tata
Reliance
Comment: India’s becoming a crowded market. It’s dominated by a number of giant operators — such as Bharti, Vodafone, Tata and Reliance — and it is increasingly seen as providing opportunities for ventures backed by operators from other countries, including Russia’s Sistema, with MTS, and now Batelco, with STel. It remains to be seen how much room there is for all of them.
New Indian mobile operator STel is raising $430 million for its venture. The Indian mobile telephony company has unified access services licences to operate in six areas — or ‘circles’ — including Orissa, Bihar, Himachal Pradesh, North-East, Assam and Jammu and Kashmir.
An eight-bank consortium, including State Bank of India, Canara Bank, Punjab National Bank, Central Bank of India, Union Bank of India, Allahabad Bank and Bank of Baroda, led by IDBI, will lend $205 million for nine years.
The promoters of the company, which include India’s Siva Group with a 49% stake and Bahrain’s Batelco with a 51% stake, have brought in $269 million as equity.
Batelco’s Group CEO Peter Kaliaropoulos says the company plans launch of mobile services in fourth quarter of 2009.
The company has partnered with other operators Tata, Reliance, Bharti and Quippo to share towers.
Batelco, listed on the Bahrain Stock Exchange, provides services in Bahrain and also has joint venture companies in Jordan, Kuwait, Yemen, Saudi Arabia and Egypt.
STel CEO Shamik Das said: “STel will benefit operationally by leveraging synergies and knowhow with Batelc.”
Siva Group — formerly Sterling Infotech — has invested in media and communications ventures in India for a number of years. GTB