The Supreme Court’s decision to cancel all 122 2G licences in India seems to be having a ripple effect in the Indian telecom industry. According to reports, Batelco seems to be following Telenor’s footsteps in deciding its future in the Indian mobile market.
The company has issued a statement claiming that Batelco’s India affiliate STel will review the sustainability of its operations under the revised terms imposed by a recent court order. The operator says that whilst the immediate focus is on STel’s customers, employees and suppliers, STel shareholders will also review the sustainability of its business operations under the revised conditions imposed by the court’s recent judgement impacting the telecoms industry.
The statement added that Batelco was not involved in the STel licence application process nor had any knowledge of any of the events surrounding the granting of the 2G licences in January 2008. Further, Batelco holds 42.7 per cent equity in STel since May 2009. As at December 31, 2011, Batelco’s carrying value of its equity in STel is $123.3 million.
Further, Batelco invested in STel following a diligence exercise with the support of financial and commercial advisers. It also received certain representations and warranties from STel’s promoter regarding the validity of the licence. The firm respects and abides by all legal and regulatory rulings and determinations in every market it operates. Batelco will review, together with other STel shareholders, all legal options following the handing down of the Indian Supreme Court judgement.
Finally, as Batelco continues to grow and diversify its operations, it intends to explore all options to remain involved in the Indian telecommunications market.