Another company, UAE-based Etisalat, has decided to suspend its operations in India following the Supreme Court’s decision to cancel licences amid the 2G scam saga. This is according to Reuters citing an Etisalat statement.
Earlier today, it had…
Another company, UAE-based Etisalat, has decided to suspend its operations in India following the Supreme Court’s decision to cancel licences amid the 2G scam saga. This is according to Reuters citing an Etisalat statement.
Earlier today, it had been reported that Indian mobile operator S-Tel would also scale down its operations after Bahrain’s Batelco decided to divest its 42.7% stake in the company. Batelco cited the 2G scandal for its exit.
Etisalat DB, the Indian JV of Etisalat, is one of the smallest operators in the country with approximately 1.6 million customers.
On 22 January, Etisalat had been quoted saying that it was considering restructuring and outsourcing some of its operations in an attempt to cut costs amid lower profits.
Etisalat blamed the impairment charge on its Indian joint venture Etisalat DB for this decline.
“Reported earnings for the year were noticeably impacted by the Supreme Court of India’s recent decision to cancel 122 licences – including that of our Indian subsidiary Etisalat DB,” the company wrote in its recent earnings release for 2011.
Etisalat could not be reached for comment before the press deadline.
