India’s Reliance
Communications said it had 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 it had 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,
but in a separate statement Etisalat urged the two parties to reach a
resolution. The United Arab Emirates operator owns a 45 percent stake in
Etisalat DB.
Under a 10-year deal signed in 2009, which the companies had
said was worth about $2bn. 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 it was working
around-the-clock to resolve the issue.
“This is a local matter between EDB (Etisalat DB) and
its vendor, therefore it is not appropriate for us to comment,” Etisalat
said in a statement.
“We are being advised regularly by EDB’s management
team and we encourage both parties to reach a resolution quickly.”
Etisalat DB, 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.
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