UAE-based operator group Etisalat has become the latest firm to write-down the value of its Indian business in the wake of the country’s wave of GSM licence cancellations announced last week.

In a statement to the Abu Dhabi stock exchange, Etisalat said that it will book an impairment charge on its 2011 financial statements of AED3.04 billion (US$827 million) relating to its Indian assets. The net impact of this charge on consolidated net profit is expected to be AED1.02 billion.

The operator reported full year 2011 net profit of AED5.84 billion yesterday, compared with AED7.63 billion a year ago.

The firm owns a 45 percent stake in start-up operator Etisalat DB, a joint venture with local partner Swan Telecom, which was one of the eight firms awarded licences under controversial circumstances in 2008.

Etisalat said that it is continuing to assess the “legal consequences” of the Supreme Court's decision to cancel the licences and is studying its “strategic options” in India.

A statement issued last week by the firm attempted to shift blame to its local partner. “The Supreme Court decision relates to events that occurred in January 2008, well before December 2008 when Etisalat invested in Swan. Etisalat has no knowledge of what occurred in the licence application process for Swan, far less did it have any involvement.”

Among the other foreign firms affected by the Supreme Court ruling, Norway’s Telenor this week announced a US$712 million write-down in the value of its Indian business (Uninor), while Batelco is selling its 42.7 percent stake in STel to Sky City Foundation for US$174.5 million.