Etisalat walks out the door in India

Abu Dhabi based telecom giant, Etisalat, operating in 18 countries, has officially pulled out of the Indian market.
“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 company said in an e-mailed statement.
The company said the decision of the Supreme Court to revoke all 122 UAS licenses issued by the Government of India in January 2008 “has removed EDB’s ability to operate from June 2, 2012.”
Etisalat has become the second large company to exit Asia’s biggest economy; after Bahrain Telecom.
The company announced that this decision was taken as a form of protection for those affected by the corporation’s actions. “The decision has been taken in order 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 said.
Etisalat holds 44.73{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} of Etisalat DB Telecom Pvt. Ltd., the Indian joint venture in which Majestic Infracon owns 45.73{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10}.
The company added that it would 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.”