Thursday, Feb 23, 2012
NEW DELHI (DOW JONES)--Reliance Communications Ltd. (532712.BY) has sought more than INR15 billion ($304.6 million) in arrears from the joint venture of Emirates Telecommunications Corp. (ETISALAT.AD) and DB Realty Ltd. (533160.BY), a person familiar with the matter said Thursday.
The joint venture--Etisalat DB Telecom Pvt. Ltd.--has a $2.2 billion, 10-year contract starting 2009 to use Reliance Communications's telecom towers. It also has a contract to use the network infrastructure of India's second-largest mobile phone company by users.
The person, who asked not to be named, told Dow Jones Newswires that Reliance Communications sought about INR12 billion in arrears for the tower deal and more than INR3 billion for the telecom infrastructure contract.
Etisalat DB offers wireless phone services in 15 of India's 22 telecom service areas, and had 1.67 million users at the end of December. Late January, Reliance Communications had stopped Etisalat DB from using its towers due to non-payment of bills. Etisalat DB had then said its service was facing network disruption across India due to technical reasons beyond its control.
Late Wednesday, Etisalat said it will shut the India joint venture's operations, after the country's Supreme Court Feb. 2 ordered the cancellation of all mobile phone licenses issued after January 2008 on complaints of corruption. The order is effective after four months.
Officials at Etisalat or the India JV couldn't be immediately reached for comments.
-By R. Jai Krishna and Romit Guha, Dow Jones Newswires; +91-9967586928; romit.guha@dowjones.com
(END) Dow Jones Newswires
23-02-12 0624GMT
