Etisalat to stop Indian network after losing mobile licenses

Middle-East mobile operator Emirates Telecommunications, known as Etisalat, is suspending its network and services in India, following a court order cancelling the mobile licenses of its Indian joint venture.

India's Supreme Court ordered previously this month that 122 2G licenses in 22 service areas issued in 2008 should be canceled within four months, as they had been purchased by business entities that manipulated the system. TRAI was instructed by the court to auction the spectrum and licenses released as a result.

Statement late Wednesday that its joint venture

Etisalat said in a statement late Wednesday that its joint venture, Etisalat DB, will be taking steps to reduce operating costs, including the suspension of its network and services. The court's decision has removed Etisalat DB's ability to operate from June 2, it added.

The company did not rule out participating in the new auctions to be announced by TRAI. "Etisalat will make a decision on its future participation in the Indian market when there is clarity on the auction process and telecommunications policy and greater legal and regulatory certainty and stability," it said.

John Ribeiro covers outsourcing and general innovation breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com