Etisalat DB, the telecom operator and JV between UAE’s Etisalat group & DB Realty India, to close down its operations in India, after SC order to cancel 122 2G licenses in Feb 2012. According to CNBC 18 TV reports, this shutdown will come at high cost, to telco, its promoters & to industry as well.
Also, according to report in Economic Times, Etisalat is planning to file a lawsuit against the promoters of DB Realty for cheating & forgery.
Here is the brief on collateral damage caused after Etisalat exits India operations:
- Shutting down 14000 Operational Telecom towers & to lay off 2000 employees in next two months.
- Written off assets worth $827 million from Balance Sheet ( of $405 million was used to buy 45{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} stakes in Swan Telecom in 2008).
- Cancelled $400 million IT Outsourcing deal with Tech Mahindra.
- Liability of Rs 3700 Cr towards banks & infra companies.
- DoT issued notice to Etisalat over recovery of Rs 1200 Cr penalty from Etisalat by ADAG group.
- 1.7 million subscribers in 15 Telecom circles are going to get affected. Need to port out to other operators soon.
