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S Tel 3G Services To Launch By Q3 Next Fiscal

One of the latest entrants to the Indian telecom game, S Tel – a joint venture between the Chennai based Siva Group and Bahrain Telecom, has announced that the company shall be rolling out 3G services in the country by the third quarter of the 2011-2012 fiscal.

The company already has a presence in Himachal Pradesh, Bihar, Jharkhand & Orissa and plans to make its foray into Assam and North east by August of this year. Having gained close to 1.2 million users in six months of operation, S Tel has an optimistic view of the growth in this sector moving forward.

However, the company’s plans with respect to 3G remain unclear at the moment. S Tel’s strategy has been to focus on the less-competitive circles like Bihar and Jharkhand which have lesser competition for a reason – poor ARPU. It is not clear how S Tel plans to recoup its investments made to win the bids in West Bengal, Himachal Pradesh and Bihar. Nevertheless, it is an interesting time for the company and we will definitely keep you posted on this one.