Foreign telcos set to appeal SC order; diplomats step in

Following the Supreme Court verdict on Thursday cancelling 122 telecom licences awarded after January 2008, at least two of the foreign operators involved have made it clear that they will not simply up and leave, but will seek a review of the decision.

The companies whose licences are cancelled are Uninor (a joint venture between Unitech and Telenor of Norway), Sistema-Shyam (a joint venture between Shyam Telecom and Sistema of Russia), Videocon, Loop Telecom, Idea Cellular, and Etisalat DB (a joint venture between DB Realty and Etisalat of UAE) (See: SC cancels all 2G licences, orders fresh spectrum auction). Russia's Sistema said in a statement on Sunday, "To safeguard our interests, we will contest this order by pursuing all available legal remedies."

Sistema is a nationwide CDMA operator with nearly 15 million subscribers. It provides direct and indirect employment to nearly 9,000 people and has invested over Rs10,000 crore so far in its Indian operations, it said.

Reports say the Russian government is also watching the situation closely, as Sistema is among the largest Russian investments ever in India.

Norway's government is certainly monitoring the situation – it owns 54 per cent of Telenor, which in turn holds 67 per cent in the Uninor joint venture.

Telenor managing director Sigve Brekke wrote to the Uninor staff in India, "I want everyone who is in Uninor and outside to know this. We are not closing. Uninor is a huge investment and it cannot be wished away - 40 million Indians have chosen Uninor. We are here to stay."