Loop Telecom, which is among the eight operators whose licenses were cancelled by the Supreme Court in its 2G Spectrum scam verdict, is closing down operations in India.
The operator has asked subscribers (through text messages and newspaper ads) in its 13 circles to port out to other available operators using Mobile Number Portability before 30th April. Loop Telecom will completely shut down its operation by 15th May. This in no way is going to affect Loop Mobile, Loop Telecom’s sister company, both owned by Essar Teleholdings. Loop Mobile operates in Mumbai Circle, and had acquired its license before 2008 by Essar group. Loop mobile currents services 32,50,000 subscribers in Mumbai.
Loop Telecom services only about 6,000 subscribers in its 13 circles which turns out to be just 0.00066% share of the Indian telecom market. This was more or less expected and we had pointed out in one of our posts following the SC verdict that Loop was likely to exit the telecom business and would look to sell whatever assets it had, because it neither raised foreign investment, nor did it have a substantive user base. During the course of the hearing of the case, it had said that it was not interested in profiteering from mispriced allocation of spectrum, and had offered to the Supreme Court that the licenses issued be taken back and re-auctioned so as to establish a fair market price for the spectrum. As per documents reviewed by Livemint.com, Loop Telecom is also seeking Rs 3,800 Crore from the Government for the licences and damages.
Loop Telecom is the third fallout after the 2G scam verdict following STel and Etisalat DB, which had recently announced their exits from the Indian market.
– Etisalat Decides To Shutter Etisalat DB In India
– 2G Verdict Update: S Tel, Sistema & Telenor
– 2G License Cancellation Verdict: What The Telcos Are Saying
– Implications Of Cancellation Of 122 2G Telecom Licenses In India & What Happens Next