The DoT on Friday asked new entrant S Tel to immediately stop mobile services in its three circles of operations namely Bihar, Himachal Pradesh and Orissa. The DoT only mentioned that the move was prompted following security concerns related to the firm without clearly pointing out to the precise area of security concern.

The DoT move is surprising because this is perhaps the first case in the country where a service provider has been ordered to stop services over security concerns. In the past whenever such cases have emerged, DoT issued show cause notices to firms under question, but has never asked any operator to stop services immediately without any prior notice.

The DoT move appears arbitrary and unusually harsh in this case when considered the fact that S Tel and DoT are involved in a dispute. S Tel had last year challenged DoT’s move to push ahead the cut-off dates for applying for new 2G licences. In 2007, the DoT had in a surprise move pushed ahead the cut-off dates from October 1, 2007 to September 25, 2007. The move had resulted in many players including S Tel losing out on the opportunity to apply for new licences across India. S Tel had applied only for licences in only six circles by then.

S Tel was the only player which challenged DoT’s move in the Delhi Court. The Delhi HC too ruled in favour of S Tel and termed DoT’s move as arbitrary. Following this the DoT approached the Supreme Court and the case is up for hearing in few days time.

S Tel was also the only player which had offered to pay more than the Rs 1,650 crore licence fee set by DoT. This move also had put DoT in a tight corner as critics questioned DoT’s move to grant licence at low prices when bidders were willing to pay at market price.

Meanwhile this move of DoT has ultimately affected the almost 8 lakh subscribers of S Tel who will have no access to mobile services atleast in the short term. In all probability they will have to switch over to other networks.

Even if one assumes that the so-called security concerns maybe over the clearance for wireless network gear or regarding S Tel’s strategic foreign investor, Batelco, such concerns should have been pointed by DoT before allowing the operator to launch services.