Etisalat DB - Cheers Mobile Going to Shutdown its Network Operation

Etisalat DB which operates its telecom service in India under the brand Cheers Mobile announces shutdown of its network operations in India, just a day after S Tel announced its plans to exit. Its decision came after Supreme Court judgement to cancel 122 2G telecom licences which effected a total of 15 telecom licences of Etisalat DB group. Etisalat DB Telecom Pvt. Ltd. is a joint venture between Etisalat, one of the world’s largest telecommunication companies with over 100 million customers across 19 countries globally and the DB Group in India. Cheers Mobile operates in 15 telecom circles in India (mainly in Mumbai and Delhi) and has over 1.6 million mobile subscribers.

“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 (unified access services) licenses,” the company said in a statement.

Further in a statement by Etisalat The decision (to exit) 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. 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,”.

According to reports, Etisalat DB will lauch a campaign just like S Tel to alert its subscribers to port-out of its network to other telecom operators using MNP.  Further information, including the official cessation date will be communicated shortly to EDB’s customers through the appropriate channels.

So second company exits from Indian market after S Tel, lets wait and see how Govt reacts to this uncertainty in the Indian telecommunications sector. Do comment your views on Etisalat DB exits from Indian telecom market.

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