Monday, Feb 06, 2012
DUBAI (Zawya Dow Jones)--Bahrain Telecommunications Co., or Batelco, the country's biggest telecom operator, on Monday said it is studying the judgement handed down by India's top court regarding the cancellation of the 2G license issued to its Indian unit STel.
India's Supreme Court last week cancelled all mobile-telecom-service licenses issued without auction after January 2008, raising uncertainty over billions of dollars that international companies have invested in the South Asian nation.
Batelco, in conjunction with STel management, other STel shareholders and legal advisers are carefully studying the detailed judgement handed down by the Supreme Court of India that cancelled 2G licences issued in 2008 and allocated spectrum granted to operators including STel, Batelco said in an emailed statement.
The Supreme Court scrapped 122 licenses issued to nine companies across India's 22 telecom services areas--each service area requires a separate license--but said the affected companies can continue operations until the government finalizes new rules for allotting licenses and bandwidth.
"STel shareholders will also review the sustainability of its business operations under the revised conditions imposed by the Indian Supreme Court's recent judgement impacting the telecoms industry," Batelco said in the statement.
Batelco holds 42.7% equity in STel since May 2009.
-By Shereen El Gazzar, Dow Jones Newswires; +971 444 61684; Shereen.elgazzar@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
06-02-12 1026GMT
