Etisalat prepares for its telecom business’ Indian exit

Etisalat prepares for its telecom business’ Indian exitUAE-based Emirates Telecommunications Corporation has started preparations for winding up its telecom operations in India following cancellations of its telecom licenses by the country's apex court recently.

The Supreme Court of India cancelled Etisalat's 13 licenses last month as part of a move in which it scrapped the validity of all 122 spectrum licenses that were granted to telecom firms during the former communications minister A Raja's time in office.

The court cancelled all the licenses on the ground they were issued in a "totally arbitrary and unconstitutional" manner. It also imposed a fine on three telecom companies that offloaded their shares after getting the licenses. Etisalat has announced its decision to shut down Etisalat DB Telecom, affecting thousands of subscribers in the country.

"Recent events have led to a complete breakdown in the relationship between Etisalat and its Indian partners, Shahid Balwa and Vinod Goenka, who face various criminal charges of corruption associated with Swan's acquisition of its UAS licences," Etisalat said in a statement.

Etisalat has pointed out that it was induced to invest in Swan Telecom (Etisalat DB) without proper disclosure of the matters that are now being investigates by CBI as part of its investigations in the 2G spectrum sale scam. Etisalat pointed out that the events occurred a year before Etisalat's investment.