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Etisalat DB, one of the mobile operators being investigated for involvement in the alleged 2G scam, on Thursday said that it was being victimised by the Government for no fault since it was the Department of Telecom who decided on the process for allocating 2G licences in 2008.
The company, which has decided to go slow on its expansion plans, said that the Government should take into consideration the investments made by foreign players like Etisalat before taking any decision.
Speaking to Business Line, Mr Majed Al- Musalli, Head-Project Management Office and Chief Project Officer, Etisalat DB Telecom said, “Etisalat invested in Swan Telecom based on the licences issued by DoT itself. We have invested nearly $2 billion in setting up a network and made plans based on the approvals given initially by DoT. Therefore it is not fair for DoT to now talk about cancellation because we are not to be blamed for the process followed in giving the licences.”
“The Government should keep in mind the foreign investors who are involved and come up with a solution that is a win-win situation for everyone involved,” he added.
DoT has issued show cause notices to Etisalat DB (earlier called Swan Telecom) for alleged violation of roll out conditions and not fulfilling the eligibility criteria at the time of applying for licences. Mr Al-Musalli said that DoT should have checked the eligibility of Swan Telecom before issuing the licence.
When asked about how the company was planning to deal with the show cause notices, he said, “We are hoping that the Government accepts our position, else we will fight it out.”
Mr Al-Musalli rejected the idea of surrendering the spectrum or exiting Swan Telecom. “When we have invested billions of dollars we cannot think about exiting. We have a long term plan for the Indian market and we intend to be a significant player,” he said.
Etisalat DB's expansion plans have got stuck because of the controversy. It was supposed to have gone for full-fledged commercial services by the end of last year but with the scam breaking out, the company has adopted a wait and watch policy on its future investments. “It's a question about how much you want to bleed. If we invest more under the current circumstances then we may bleed more. So we have taken a conscious decision to go slow till this issue gets resolved,” Mr Al-Musalli said.
When asked if Etisalat had picked a wrong partner in DB Reality, he backed the Indian company saying that the partnership was with an organisation and not any individual. UAE-based Etisalat had bought 45 per cent stake in Swan telecom for $900 million in 2008 and is looking to increase the stake.
Indicating that it was game for acquiring existing mobile operators, Etisalat DB's India head said that the Government should also relax the current merger and acquisition rules. “If there is an opportunity to acquire another operator and if that makes business sense then Etisalat will look at it. In the past, we have always been the buyer not the seller in other markets,” Mr Al-Musalli said.
tkt@thehindu.co.in
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