The Etisalat board's decision, which was unanimous, will affect about 1.67 million subscribers that Etisalat DB has, mostly in northern India
In addition, all of Etisalat DB employees will be laid off, said a statement emailed to PTI.
In a statement issued late on Wednesday, the company said it was pulling out "to avoid incurring further costs at this time of rapid change and continued uncertainty in the Indian telecommunications sector".
The company added in its statement that it would make a decision on whether to reenter the Indian market “when there is clarity on the auction process and telecommunications policy and greater legal and regulatory certainty and stability”.
Etisalat, which operated in India through a joint venture with real estate major DB Group, earlier this month booked an impairment charge of US$827 million on its Indan operations, leading to a 24 per cent drop in its net profit.
Etisalat will also seek a refund from the Department of Telecom. In 2008, Etisalat bought a 45 percent stake in Swan Telecom for US$900 million.
At the time, Swan was promoted by DB Realty. Etisalat said in its statement that:
"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."
The Etisalat board has nominated new members to oversee the closure of its Indian operations, which is expected to be completed by June 2, 2012. -- NNN-BERNAMA
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