As the Centre bans prepaid services as a check against militants using them, 39 lakh people, nearly half the population of the state, have no connectivity - mostly the lower middle class, who cannot afford post-paid services.

"I run a courier service. Each day I receive three to four complaints. I need to call Delhi and Hyderabad. But what can I do if I am not allowed to recharge my phone?" said Hilal Ahmad, prepaid service subscriber.

The subscriber base, overnight, has shrunk to six lakh post-paid connections, which can still be bought after a series of stringent checks.

The ban is a result of a state CID investigation. Yet the state says it has no role in the ban.

"This is not law and order. This is totally a communication subject and the Central government is dealing with the subject," said Ali Mohammad Sagar, Law Minister.

On the roads of Srinagar, there are huge protests being led by the Opposition. They say the ban has cost many people their jobs. They say the ban shows that the Centre eyes Kashmiris with suspicion.

Critics say if the misuse of a few hundred prepaid mobile connections by militants can force the government to ban SIM cards of nearly four million people, how will the government then deal with the issue of fake currency and hawala money in Kashmir that has sustained militancy for last two decades?