The aftermath of Supreme Court of India decision to revoke UAS licences lead to quit telecom operator Etisalat DB from Indian operations. Etisalat DB Telecom Private Ltd, run by Abu Dhabi based Etisalat and Dynamic Balwas Group in India with its subsidiary was holding licences in 15 circles across India. All the licences from circles including Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar are been revoked/cancelled by Supreme Court in a Judgement. Etisalat DB bought Swan Telecom by investing $900 million (approx Rs.3987 crores) during September 2008 with 45 percent and 55 percent by Etisalat and DB Group respectively.
The company in an official press release stated, “The decision of the Supreme Court of India to revoke UAS licences has removed Etisalat DB’s ability to operate from June 2, 2012. As unanimously resolved by the board this evening, Etisalat DB will be taking steps to reduce operating costs, including the suspension of network and services, pursuant to the terms of its unified access service licences. The factors behind the Supreme Court judgment are based on actions that took place long before Etisalat entered the Indian market and considered investing in Swan Telecom.”
Extending the talks, the company claims that Etisalat believes in taking a sensible and appropriate decision for the time. The company will try to make a decision on future participation in Indian market once the issues related to the 2G scam were settled. Also, they will park their decisions until they get clarity on the auction process and look forward to listen some stable telecom policies and regulatory norms in the country. Etisalat is the second company after S Tel to lose all the licences the venture held. S Tel Private Limited, a jointly operated telecom operator in India (between Sterling Infotech Siva Group and Bahrain Telecommunications Company Batelco) is also ready to wind up its show in India.