Report: Loop may lose Indian licenses - Mobile World Live

Report: Loop may lose Indian licenses

05 OCT 2009

The future of new Indian operator Loop Telecom appears to be in doubt following reports that it is facing the potential forfeiture of its 21 operating licenses after the country’s Department of Telecom asked the Ministry of Corporate Affairs to carry out a second investigation into the company’s shareholders. Cellular News, citing an Economic Times report, notes that there have been suspicions that India’s Essar Group is financially backing the company, despite being a 33 percent shareholder in Vodafone Essar. The article states that the Essar Group says it has just a 9.99 percent indirect holding in Loop Mobile, which is within the legal limit of no more than 10 percent in a second operator.

Loop Telecom – which operates services under its parent’s brand, Loop Mobile – has seen its mobile operation at the centre of recent acquisition rumours. Domestic rival Aircel has reportedly been in talks to buy the company, whilst Zain has also been linked to the operator. According to Wireless Intelligence, Loop had 2.31 million connections at the end of June this year.

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