23.2.12

Etisalat quits India

UAE-based telecom major Etisalat has decided to exit from India and will shut the operation of its Indian arm Etisalat DB—a joint venture with Mumbai-based real estate firm DB Realty—following the Supreme court judgment to cancel 121 licenses. The company said the decision to revoke all 122 UAS licenses issued by the government in January 2008 “has removed EDB’s ability to operate from June 2, 2012.” The company, in a statement said, “As unanimously resolved by the Board this evening, Etisalat DB will be taking steps to reduce operating costs, including the suspension of its network and services, pursuant to the terms of its UAS licenses.” The decision has been taken to protect the interests of all stakeholders and to avoid incurring further costs at a time of when the Indian telecom sector was witnessing rapid change and facing uncertainty. The company will decide on its future participation in the Indian market, when there is clarity on the auction process and telecommunications policy and greater legal and regulatory certainty and stability, the statement said. Etisalat is the second company after Bahrain Telecom, to exit India. Bahrain Telecom, which had 43% stake in S-Tel sold its stake for $ 175 million on February 8. Etisalat has around 1.6 million customers and it has licenses to operate in 15 circles.

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