UAE telecom major Etisalat, the JV partner of Etisalat DB whose licences were quashed by the supreme court in February, on Wednesday said it will not participate in spectrum auction to be held in November this year.

"... wishes to confirm that it has decided not to participate in the auction," Etisalat said in a statement.

Etisalat is the first company to formally announce that it will not participate in the spectrum auction.

The Indian telecommunications industry has significant potential and Etisalat Group has high regard for government of India, judiciary, and its regulatory bodies and wishes a positive outcome for the forthcoming auction, the statement added.

Etisalat held around 44.7 per cent stake in Swan Telecom (later renamed as Etisalat DB) whose licences were cancelled by supreme court on February 2, 2012. It has been in dispute with its partner Majestic Infracon after names of its promotors Shahid Balwa and Vinod Goenka figured in the 2G scam.