Abu Dhabi-based Etisalat Telecom operator Etisalat DB on Wednesday said that it has taken the decision to shut down operations in India following the Supreme Court verdict on February 2 canceling all the 122 spectrum licences allotted in 2008. Etisalat’s 15 licences are set to be cancelled after the apex court order.

With this Etisalat becomes the second telecom operator after S Tel to wind up its operations in India.

“The decision of the Supreme Court of India to revoke UAS licences has removed Etisalat DB’s ability to operate from June 2, 2012. As unanimously resolved by the board this evening, Etisalat DB will be taking steps to reduce operating costs, including the suspension of network and services, pursuant to the terms of its unified access service licences,” the company said in a statement. press release. The company's licences in 15 circles have been cancelled as a part of the court's verdict.

The company further said that Etisalat believes this is a sensible and wholly appropriate action under the circumstances. Etisalat will make a decision on future participation in the Indian market when there is clarity on the auction process and telecommunications policy and greater legal and regulatory certainty and stability.

Etisalat said this decision has been taken to protect the interests of its stakeholders and avoid incurring further costs. The company noted this is a time of rapid change and continued uncertainty in the Indian telecommunications sector.

“The factors behind the Supreme Court judgment are based on actions that took place long before Etisalat entered the Indian market and considered investing in Swan Telecom,” the company said.

Etisalat DB Telecom Pvt. Ltd. is a joint venture between Etisalat and Dynamix Balwas Group. Etisalat DB and its subsidiary has  the Unified Services Access License in 15 circles including Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar. These licenses enable the Company to provide a full spectrum of telecom services covering a population of over 900 million across these circles. Under the license the Company can also provide Internet.