Etisalat moves towards winding up Etisalat DB (UAE, India)
UAE’s leading telecom operator Etisalat has said that it has started winding up its Indian venture and hopes to end it in a proper and orderly manner. The move follows the order by the Indian Supreme Court which cancelled 122 2G licences acquired by telecom operators in the 2008 licence auction. Etisalat DB held 15 of the cancelled licences.
As per a statement made by the company, Etisalat has issued proceedings for the winding up of Etisalat DB Telecom Pvt. Ltd. The step was taken to ensure a proper and orderly end to the business supervised by the Indian courts. The company added that it will stop providing mobile services in India on March 31.
The company also said that Etisalat was completely unaware of any issues or risks associated with the licenses, which were already owned by Swan when it made its investment. Etisalat has sued Indian partners Shahid Balwa, Vinod Goenka and Majestic Infracon for fraud and misrepresentation associated with soliciting Etisalat’s investment in Swan.
Further, the statement said that the Indian company is also unable to meet the funding requirements of the Indian venture.
Tech Mahindra to receive official termination notice from Etsialat (UAE, India)
Following the Indian Supreme Court’s cancellation of 122 2G licences awarded to telecom companies in 2008, over claims that the licences were not availed legally, Etisalat had announced that it will shut down operations of joint venture Etisalat DB in India.
However Tech Mahindra, which has signed a contract with Etisalat DB, has said that they are still awaiting official communication from them on the decision about cessation of operations. Further, they plan to have a discussion with Etisalat subsequently.
According to reports, Etisalat and Tech Mahindra’s contract is worth US$ 400 million for a period of 10 years.
The supreme Court’s decision also caused Bahrain Telecom to shut down Indian operations, while Telenor is looking for a new partner to continue their services in the country.
Etisalat DB to end Indian operations (UAE, India)
The Indian Supreme Court’s decision to cancel 122 2G licences seems to be having a ripple effect, with UAE based Etisalat also planning to shut down its operations in India.
According to a company statement, Etisalat has said that as unanimously resolved by the Board, Etisalat DB will be taking steps to reduce operating costs, including the suspension of its network and services, pursuant to the terms of its UAS licenses. The operator claims that the decision to cancel the licences has removed EDB’s ability to operate from June 2, 2012.
Etisalat added that the decision has been taken in order to protect the interests of all stakeholders and to avoid incurring further costs at this time of rapid change and continued uncertainty in the Indian telecommunications sector.
Further information, including the official cessation date will be communicated shortly to EDB’s customers through the appropriate channels.
Bahrain Telecom had also announced its exit from India soon after the ruling, while Telenor has announced that it is searching for a new partner to carry out its operations in the country.
Relaince Communications terminates Etisalat DB’s services (India, UAE)
Indian broadband and telecommunications company Reliance Communications, has disconnected Etisalat DB’s services on account of non-payment of charges. Etisalat DB is a joint venture between UAE’s leading telecom operator Etisalat and India’s DB Group, enabling Etisalat to provide services using Reliance Communication towers. As per reports, the non-payment of fees despite several reminders is what led to this decision.
Etisalat DB has reportedly been having network trouble since the past few days owing to technical reasons. The firm released a statement apologizing for the inconvenience caused to customers, but is yet to admit to any rift with Reliance. The company has said that they their team has been working round-the-clock to resolve the issue and restore the mobile services at the earliest.
Reports reveal that Etisalat DB is allowed to provide services in 15 circles consisting of Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East and West), Madhya Pradesh and Bihar.
Decision on license cancellation in a month’s time (India)
The Telecom Ministry has stated that it will decide in a month’s time on cancellation of licenses given by former Telecom Minister A Raja in 2008 to allegedly ineligible firms.
According to Telecom Secretary R Chandrasekhar, they have received replies from all 85 license holders who were issued showcause notices. They are legally examining them and should be able to take a decision on it in a month’s time. He categorically denied that any license has been cancelled so far.
He added that the Telecom Ministry has issued notices to firms on two issues — ineligibility to get licenses and missing roll-out obligations within the stipulated timeframe; the process to send notices would be completed within a week.
As per the DoT officials, DoT has to give 60 days to the operators to file their response to the showcause notice for cancellation of licenses. In certain cases, 60 days are over while in some, there is till some time.
The matter is being examined by various investigating agencies and also a parliamentary panel.Notices have been issued to Swan Telecom (now Etisalat DB), Datacom (now Videocon Telecom), S Tel, Uninor and others, either due to ineligibility or for missing roll out obligations.
In its reply to the Public Accounts Committee, headed by BJP leader Murli Manohar Joshi, the DoT again rejected the allegation of any notional loss due to the issuance of 122 new licences in 2008 . He stated that the premium placed on the scarce resource from the perspective of a producer need not necessarily translate into a loss when seen from the view point of the consumer and public welfare.
According to DoT, the concept of notional loss when spectrum is given at a price discovered few years earlier has to be balanced with the gains accruing to the consumers and the general improvement in public welfare in the form of faster economic growth.
The PAC had sent 40 questions to the DoT related to the 2G spectrum scam.
Suggesting that the notional loss reported by the audit report should be seen in light of the benefit that it has given to consumers and general public welfare in the form of quick economic growth, the DoT stated that the objectives of the Telecom Policy since 1999 was to increase teledensity and affordability for consumers, while maintaining a level playing field between incumbents and new players as well as revenue accrual for the government.
DoT issues notice to Idea, Etisalat DB for cancelling licenses (India)
The Indian government has issued notices to Aditya Birla group company Idea cellular for Punjab circle and new operator Etisalat DB for Delhi and Mumbai for cancelling their 2G licences for missing roll-out obligations respectively.
According to DoT Secretary R Chandrashekhar, a notice has been issued to Idea Cellular for Punjab circle.
Earlier, a similar notice had been issued to Etisalat DB for cancellation of its licence in Delhi and Mumbai circles.
In Idea’s case, the notice has been issued for not meeting launched obligations and for other violations of licence conditions.
DoT issued Letters of Intent (LoIs) to Idea Cellular for providing Unified Access Services in nine service areas– Kolkata, West Bengal, Assam, Karnataka, Orissa, North East, Jammu & Kashmir, Punjab and Tamil Nadu (including Chennai) on January 10,2008.
A. Raja remanded to stay in jail until March 17 (India)
India’s former Telecoms Minister, Andimuthu Raja has been remanded to stay in jail until March 17th as investigations into the 2008 telecoms licensing scandal continue. Three other men, who were also arrested by the investigators, were also remanded to stay in jail.
The Central Bureau of Investigation (CBI) Special Judge sent Shahid Usman Balwa, the owner of DB Realty – a minority shareholder in the mobile network, Etisalat DB, R.K. Chandolia, former personal secretary to Raja, and Siddarth Behura, former telecom secretary, to an additional 14 days judicial custody after their earlier remand order expired.
Raja, Behura and Chandolia were arrested on 2nd February, while Balwa was arrested on the 8th February.
The CBI has been investigating the total loss to the government made by the huge number of telecom licenses granted in 2008. The loss is estimated to be nearly US$5 billion.
Etisalat DB’s Shahid Balwa arrested as India widens 2G probe
Indian federal investigator has arrested Shahid Balwa, Vice Chairman of Etisalat DB Telecom India Pvt., widening a probe into the sale of mobile-phone licenses that has already triggered the detention of a former minister.
According to the agency’s spokeswoman, Binita Thakur, the Central Bureau of Investigation arrested Balwa yesterday. His arrest comes a week after authorities’ detained former telecommunications Minister Andimuthu Raja for questioning. Balwa is also the managing director of DB Realty Ltd., a Mumbai-based property developer.
A Mumbai court has remanded Balwa to two days in custody after the agency argued that Raja conspired to favor companies including the then Swan Telecom Ltd., now known as Etisalat DB, and Unitech Ltd. by violating guidelines in the license sale. The bureau, which won approval to quiz the former minister until tomorrow, told a New Delhi court on Feb. 3 that Raja caused a loss of US$4.8 billion to the exchequer.
