Etisalat plans India shut-down

Dylan Bushell-Embling | February 23, 2012

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Following the cancellation of their 2G licenses by India's Supreme Court this month, Etisalat DB has announced plans to shut down services, and STel is rumored to be considering doing the same.

Etisalat DB, a joint venture between UAE-based Etisalat and DB Group's Swan Telecom, states it is shutting down its network and services to avoid incurring further costs, LiveMint reports.

The company had held an operating license for 15 telecom circles, serving around 1.7 million subscribers at end-2011, but lost out when India’s Supreme Court cancelled 122 2G licenses earlier this month.

Etisalat DB's decision came a day after rival STel began offering subscribers the chance to port out of its network, amid rumors it may shut down operations as well.

The operator states it is unable to receive the required funding from banks, and that its infrastructure and media vendors had started disconnecting services, Reuters reports.

STel had 3.6 million customers at end-2011, with operating licenses in six circles. But it recently lost its foreign partner Batelco, which was the first operator to announce plans to exit the Indian market following the court's decision, by selling its entire 43% stake in STel.

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telecomseurope.net

Dylan Bushell-Embling

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