Reliance cuts off Etisalat over payments
New Delhi, January 24, 2012
India's Reliance Communications said it has disconnected from its network a mobile phone joint venture between Abu Dhabi-based Etisalat and India's DB Group over non-payment of fees for using its towers.
The joint venture, Etisalat DB, said separately that it has been facing network disruption across India since last Friday due to a technical issue beyond its control. It did not mention any dispute with Reliance Communications.
Under a 10-year deal signed in 2009, which the companies had said was worth about $2 billion, Etisalat DB uses Reliance's base stations to provide services in 15 zones in India.
"Despite repeated reminders, payments have been inordinately delayed by EDB (Etisalat DB) without any reasonable cause, leading to the disconnection of services," a Reliance Communications spokesman said in a statement.
Etisalat DB issued a statement apologising to its customers for "a temporary mobile service disruption", adding that it was working around-the-clock to resolve the issue.
Etisalat in Abu Dhabi was not immediately available for comment.
The company, which had 1.67 million subscribers as of December, is ranked 14th among India's 15 mobile operators.
Etisalat DB and top executives of the DB Group are among several companies and more than dozen people charged by police in a massive telecoms licensing scandal over the alleged below-market-price sale of telecom permits in 2008.
All the accused have denied any wrongdoing. Etisalat has said the events described in the charges pre-date its entry into India. – Reuters
More IT & Telecommunications Stories
- Windows XP users warned on usage risks
- Tecom units welcome 181 new companies
- Ooredoo chairman joins WB gender equality council
- Mobily, Jasper start wireless M2M service
- Telecom Egypt expects mobile licence in Mar or Apr
- Sandvine wins big Etisalat follow-on order
- Aveva software for engineering plant design
- Nawras to upgrade VSat services across Oman
- Mobily, Huawei sign smart network contract
- Etisalat, Tata launch video connect service
- Talia seals new partnership with Thuraya
- 4-pillar approach for telecom operators to boost growth
- Dubai mobile emissions below global standards
- Nawras signs capacity contract with SES
- Etisalat showcases satellite solutions at Cabsat
- Batelco launches 4G LTE roaming
- Gulf Air clinches best innovation award
- Viva inks Pepsi partnership deal
- Du offers free smarphones on tablet purchase
- Batelco launches double credit promotion
- Cyber threats focus of Bahrain security talks
- Bahrain tech expo to honour innovators
- Scope ME named distributor for InfoWatch
- Nawras quadruples 3G+ mobile services
- Menatelecom expands bill paying network
- Du joins new global cable consortium
- Kuwait moves to create telecoms watchdog
- Batelco backs Royal Fund for Martyrs
- Egypt's Global Telecom posts $749m Q4 loss
- Red Hat launches open source BPM suite