The ₹700-crore deal between Bharti Airtel and Loop Mobile is set to be called off, with the telecom regulator disallowing the transfer of subscribers. The Telecom Regulatory Authority of India (TRAI) has issued a notice to Loop, asking it to inform its subscribers to shift to an operator of their choice after the closure of service.
This comes as a blow to Loop as it will not get the deal money from Airtel. Loop was hoping to use the proceeds from the deal to pare debt. Some of the lenders had written to the Department of Telecommunications (DoT) that the outstanding loan amount could turn non-performing if the deal with Airtel was not allowed to go through.
But TRAI has directed Loop to inform the date of closure of its services in Mumbai to all subscribers either in writing or by sending an SMS or email within 10 days.
In June, TRAI had written to the DoT, saying the transfer of subscribers should be allowed only through the mobile number portability route. Airtel had announced that it would acquire Loop’s three million subscribers in Mumbai, along with its infrastructure. Loop’s infrastructure includes 400 towers.
According to the regulator, subscribers’ consent has to be taken before they can be switched to another operator’s network.
Loop’s 20-year licence expires in November and the company was unable to win back spectrum to continue services. Airtel, on the other hand, won spectrum in Mumbai in the last round of auction.