UAE-based operator Etisalat said it will shut down the operations of its Indian joint venture, three weeks after an Indian court cancelled the affiliate's licence amid a corruption probe. Earlier this month, Etisalat wrote down its 45 percent stake in Etisalat DB by USD 827 million, after the affiliate's 15 licences were among 122 the Supreme Court ordered to be scrapped. Etisalat said it will decide on any future activity in India when there is clarity on the auction process and telecommunications policy and greater legal and regulatory stability. Etisalat paid USD 900 million in 2008 for its stake in the Indian company, then called Swan Telecom, after the licence had been granted. The company then invested more than USD 1 billion in the venture, later renamed Etisalat DB. Top executives of Etisalat's India partner DB Group and the joint venture mobile company are among 19 people and six companies charged by police in the telecoms licence scandal, awaiting trial. The operator said that Etisalat DB will be taking steps to reduce operating costs, including the suspension of its network and services. The decision has been taken in order to protect the interests of all stakeholders and to avoid incurring further costs, Etisalat said. Etisalat DB has licences for 15 of India's 22 telecommunication zones and its 1.7 million subscribers as of December ranked it 14th in a 15-operator market.
