By Telecom
Lead Team: Etisalat announced that it is taking a $829 million hit on its
Indian income after the Supreme Court here had cancelled all 15 mobile permits
held by the Gulf carrier’s joint venture.
Norway’s Telenor wrote down $721 million in licences and goodwill in India
after all its 22 mobile permits were quashed by the apex court.
Recently, Bahrain Telecommunications said it was exiting India by selling its
43 percent stake in S Tel back to its Indian affiliate. All six mobile permits
held by S Tel were scrapped by the Supreme Court.
Etisalat,
the Arab world’s second largest telecom company by market value, entered the
Indian market in 2008 after buying a 45 percent stake in DB Realty-promoted
Swan Telecom for $900 million.
Etisalat has invested more than $1 billion in its JV. The telco has about 1.6
million customers and employs about 3000 people.
“Etisalat
expects the Government of India to bring about a rapid and just solution and to
fairly compensate investors and Etisalat’s senior management is fully-engaged
to safeguard its investment. Etisalat is also continuing to assess the legal
consequences of the Supreme Court’s decision and Etisalat’s strategic options
in India,” the company said in a statement.
