The Airtel and Loop acquisition case is almost 16 month old which happen nearly at the end of the February last year. Loop mobile which operates only in Mumbai circle had more than 3 million subscriber till November 2013 and Bharti Airtel with 4.1 million subscribers second to the Vodafone with 6.8 million subscribers in Mumbai circle. The Loop Average Revenue per User (ARPU) was about ₹225, against the sector average revenue of ₹100 and Airtel’s ARPU of ₹195.
As Loop’s Mobile License got expired on last quarter of 2014 and it had a debt of ₹400 Cr. So, there was a news from source that Airtel is going to acquire Loop Mobile and the announcement will come out in some days and the deal is likely to be final in ₹700 Cr. Among these the debt of ₹400 Cr. is also going to be including in the final deal. If Loop is acquired by the Airtel, Bharti Airtel will be the biggest operator in the city with 7 million subscribers from the sources, it is also clear that Loop is going to sell both its Mobile and Tower Business.
Bharti Airtel had agreed to acquire Loop Mobile in February to be the biggest operator in Mumbai circle but the deal was canceled, for not able to get the approval from the Telecom Regulatory Authority of India (TRAI) and Telecom Department of India. As they objected by saying that they can’t be restrict the Loop subscribers from porting to another network service provider and the Bharti Airtel’s acquisition is not a part of India’s telecom policy.
An analyst says that it was a bad deal where the facility of mobile Number Portability is a good option to change the subscriber. As this deal will help the Airtel or Vodafone to acquire the Loop’s customer as the Loop is going to be out of market in Telecom Industry but the deal was fail because of TRAI interference.
On Another hand Loop has requested TRAI to assist in closing its operations and help Loop’s customer with individual porting codes to its entire subscriber base. So that subscriber can easily port to other network before the licence expires (29 November 2014).
As on 8 th June 2015 status from Indian Court. Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters Kiran Khaitan, her husband I P Khaitan and Vikash Saraf are facing trial in the case along with three companies -- Loop Telecom Ltd, Loop Mobile India Ltd and Essar Tele Holding Ltd (ETHL).
As Loop’s Mobile License got expired on last quarter of 2014 and it had a debt of ₹400 Cr. So, there was a news from source that Airtel is going to acquire Loop Mobile and the announcement will come out in some days and the deal is likely to be final in ₹700 Cr. Among these the debt of ₹400 Cr. is also going to be including in the final deal. If Loop is acquired by the Airtel, Bharti Airtel will be the biggest operator in the city with 7 million subscribers from the sources, it is also clear that Loop is going to sell both its Mobile and Tower Business.
Bharti Airtel had agreed to acquire Loop Mobile in February to be the biggest operator in Mumbai circle but the deal was canceled, for not able to get the approval from the Telecom Regulatory Authority of India (TRAI) and Telecom Department of India. As they objected by saying that they can’t be restrict the Loop subscribers from porting to another network service provider and the Bharti Airtel’s acquisition is not a part of India’s telecom policy.
An analyst says that it was a bad deal where the facility of mobile Number Portability is a good option to change the subscriber. As this deal will help the Airtel or Vodafone to acquire the Loop’s customer as the Loop is going to be out of market in Telecom Industry but the deal was fail because of TRAI interference.
On Another hand Loop has requested TRAI to assist in closing its operations and help Loop’s customer with individual porting codes to its entire subscriber base. So that subscriber can easily port to other network before the licence expires (29 November 2014).
As on 8 th June 2015 status from Indian Court. Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters Kiran Khaitan, her husband I P Khaitan and Vikash Saraf are facing trial in the case along with three companies -- Loop Telecom Ltd, Loop Mobile India Ltd and Essar Tele Holding Ltd (ETHL).
Bharat Kumar
Batch - 2017
Symbiosis Institute Of Telecom Management
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