Cost Cutting a Prudent Strategy for Managing EDB's Financial Resources
February 22, 2012 Abu Dhabi, UAE & Mumbai, India – The decision of the Supreme Court of India to revoke all 122 UAS licenses issued by the Government of India in January 2008 affecting eight major operators, including several major international telecommunications companies, has removed EDB's ability to operate from June 2, 2012. As unanimously resolved by the Board this evening, 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 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.
The Emirates Telecommunications Corporation - Etisalat believes that this is a sensible and wholly appropriate action under the circumstances. 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.
The factors behind the Supreme Court judgment are based on actions that took place long before Etisalat entered the Indian market and considered investing in Swan Telecom.
Further information, including the official cessation date will be communicated shortly to EDB's customers through the appropriate channels.
At this stage, EDB would like to thank its subscribers in India for their custom, and regrets any inconvenience caused.
