Loop has said in late last evening sent us an email noting that DoT (Department of Telecom) approvals had yet not been received and had also noted that it was way beyond the time envisaged for securing such an approval,”
Bharti Airtel said in a statement to the stock exchanges late on Wednesday. “In light of this update, and the fact that Loop’s mobile licence is set to expire at the end of the month, we have decided to terminate the discussions with regard to the transaction for acquiring the subscribers of Loop.
In light of this update and the fact that Loop’s mobile licence is to expire at the end of this month, we have decided to terminate the discussions with regard to the transaction for acquiring subscribers of Loop, the company said in a statement to stock exchanges. Meanwhile, Loop has requested the telecom regulator for assistance to wind up its operations.
We are planning to generate individual porting codes to all our existing Loop customers to facilitate their easy port out to other networks before the 29 November deadline. We have approached Trai for permission to generate these special porting codes, and expect a reply by Friday.
Mr. Mahadevan said. Loop will also refund all post-paid customers deposits by crediting the deposit amount in their last bill and any remaining deposit amount will be refunded to the customers within two-three weeks.
At the end of August, Loop was left with around 1.7 million subscribers. Bharti Airtel had 4.6 million subscribers at the end of August in Mumbai, up from 4.4 million in February, while Vodafone had 7.8 million in August, an increase from 7.5 million in February.
Had Bharti Airtel successfully got most of Loop’s subscribers, it would have been a close second to Vodafone in Mumbai. In return, the deal would have enabled Loop to pay off its debt of more than Rs.300 crore owed to financiers and around Rs.700 crore owed to the telecom department in spectrum usage fees and licence charges.
It seems like Bharti’s dream to be the largest network in the metropolitan city is likely to remain a dream for some more time, said Mr. Sanchit Vir Gogia, founder and chief executive officer of Greyhound Research, said. Loop is going to face more difficulties times ahead with heavy debts to clear with Indian banks.