As time runs out, Loop wants to move only users to Airtel

Loop Mobile is seeking to migrate only its subscribers to Bharti Airtel due to the paucity of time as the Mumbai’s oldest telecom operator’s licence and spectrum expire in November.

This is a shift from its earlier stance, when the operator had sought approvals to transfer assets, including both passive and active infrastructure.

“Continued uncertainty owing to delay in securing approval for the transaction is causing huge anxiety and confusion among Loop’s subscribers, employees and various vendors and service partners, which is detrimental to all,” Loop Mobile said in a letter to the Department of Telecom.

In the letter, a copy of which was seen by

BusinessLine , Loop confirmed that customers have the option to port out to an operator of their choice.

Further, the customers to be migrated to Airtel would continue to enjoy the same tariffs and schemes they were using at Loop.

The company, which has about 3.2 million subscribers, intends to transfer all customers to Airtel, and will inform users through notices and text messages of the expiry of spectrum, it said.

Bharti Airtel declined to comment, while calls and mails to Loop went unanswered.

Losses to banks

If the migration is not approved, it would result in losses for Indian banks that have provided project finance to the company.

Loop says it does not have the financial ability to repay if the migration is not completed and it would be required to wind up operations.

Further, it would also result in revenue losses to the exchequer by way of migration fee, it added.

The GSM operator’s application to transfer assets to Bharti Airtel, following its acquisition, has been pending for more than six months.

Loop’s licence and spectrum are set to expire on November 29, 2014. In February, Airtel announced the acquisition of Loop in a move that will help the country's largest operator by subscribers to strengthen its presence in Mumbai. While the financial details of the deal were not disclosed, media reports pegged it at about ₹700 crore.

TRAI’s notice

Earlier, the Telecom Regulatory Authority of India disallowed the transfer of subscribers.

The telecom regulator had also issued a notice to Loop, asking it to inform its subscribers to shift to an operator of their choice after the closure of service.

Even though the letter did not mention anything on infrastructure and equipment, sources said the priority is to salvage the situation as the deal is yet to get regulatory approvals.

Loop’s subscribers were facing frequent network outage, with call drops and connectivity issues.