The controversy over the lawful interception issue for new telecom operator S Tel could end in a couple of days. A top official in the department of telecom (DoT) on condition of anonymity confirmed to Financial Chronicle that the issue had been resolved and the permission for unrestricted services would be granted to the company.

Lawful interception is a technological process through which security agencies can intercept voice as well as data signals transmitted across telecom networks.

“There have been issues over lawful interception in three circles, Himachal Pradesh, Orissa and Bihar, and for which DoT had sent a notice to S Tel. The matter has been now resolved and the clearance certificates will be issued within a couple of days,” the official said.

According to him, the lawful interception permission is granted by security agencies and renewed from time to time.

The official said that the reason why S Tel was told to stop services in the three circles on March 5 was that the operator had failed to maintain the interception guidelines there. “Once the software for interception is installed or restored, as promised by the company, DoT will lift the ban,” he added.

S Tel’s chief executive officer, Shamik Das, told Financial Chronicle, “We have had talks with DoT and the matter is getting resolved. We are expecting a communication from the department.” S Tel also met communications and minister A Raja to resolve the issue of lawful interception.

S Tel had earlier challenged in the Supreme Court the DoT decision to advance the cut-off date for applying for new 2G licences from October 1 to September 25 in 2007.

The company has licences to operate in six circles and has begun operations in three where it has 8,00,000 subscribers. Das said the company was waiting for spectrum to start services in the remaining three circles --- North East, Assam and Jammu & Kashmir.

In January S Tel grabbed 20 per cent of all new subscribers. It added to its base 3,64,000 subscribers in that month.

S Tel is a joint venture between the Chennai-based Siva group and Bahrain Telecom Company (Batelco), which has 42.7 per cent in the telecom company. S Tel has sought approval from the foreign investment promotion board (FIPB) to hike the foreign direct investment in it to 49 per cent. The application will be taken up for consideration on Friday.

bhaskarhazarika@mydigitalfc.com