UAE-based Etisalat has written off investments worth AED3.044bn (US$829m) on its Indian joint venture Etisalat DB.
This comes just a week after India’s Supreme Court ordered the cancellation of 122 2G licences that were, according to the ruling,…
UAE-based Etisalat has written off investments worth AED3.044bn (US$829m) on its Indian joint venture Etisalat DB.
This comes just a week after India’s Supreme Court ordered the cancellation of 122 2G licences that were, according to the ruling, illegally granted in 2008. Etisalat DB is among the eight operators facing the loss of their 2G licences.
In a statement on 9 February, the company said: “Etisalat is continuing to assess the legal consequences of the Supreme Court’s decision and its strategic options in India. Based on the outcome of our assessment and certain developments, there may be further impacts on our financial statements which will be reflected in due course.”
Norwegian telco Telenor wrote off NKr4.2bn (US$720m) days ago in a reaction to the licence ruling. Its Indian JV Uninor is at risk of losing as many as 22 licences.
Meanwhile, another affected operator, Bahrain Telecommunications Company (Batelco), said it would exit the Indian market by selling its 42.7% stake in Indian JV S Tel to its partner Sky City Foundation.
This marks the first foreign exit since the 2G scandal unravelled in India about 18 months ago. There are concerns that other operators might follow suit.
