2G fallout: Etisalat joins STel in exiting telecom mart
23 Feb 2012
The Supreme Court judgment early this month cancelling 122 telecom licences allotted after January 2008 has forced another exit from the market - Etisalat DB announced on Wednesday that it is shutting down its services in India.
The Emirates-based Etisalat also said it is in the process of exiting its partnership with its Indian partner DB Realty.
''As unanimously resolved by the board, 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 (united access service) licences,'' the company said in a statement.
The apex court's order ''has removed EDB's ability to operate from 2 June 2012'', the telecom firm said.
''The decision has been taken to protect the interests of all stakeholders and to avoid incurring further costs at this time of rapid change and continued uncertainty in the Indian telecommunications sector.''
Etisalat (formerly Swan Telecom) has 16.7 lakh subscribers across 15 circles. Like others whose licences have been cancelled, it seems to be waiting for clarity on the fresh spectrum bidding process before it commits itself further.