Bharti Airtel in Talks to Acquire Mumbai’s Oldest Loop Mobile

Follow Us

loop-mobile-airtel-merger-acquisitionMumbai's oldest mobile operator Loop Mobile is in talks with Bharti Airtel for possible merger, as Loop's main promotor Dubai based Khaitan Holdings Group looks to exit the telecom sector. Earlier Loop was in talks with Telenor, Aircel and Idea Cellular.

Loop Mobile, earlier known as BPL Mobile is serving the metro since 1995 and currently serves nearly 3 million subscribers with 4th spot. Loop generated a gross revenue of Rs 128 crore in quarter ended December 2012. But at the same time Loop, which enjoys highest ARPU in the circle & 30% postpaid customer base has only 44.36% active subscribers, which is second lowest in the market.




Loop Mobile's sister company Loop Telecom grabbed licenses in 21 circles in 2008, but all licenses were cancelled in February 2012 by Supreme Court verdict. Since then Loop is present only in one circle - Mumbai. The license of Mumbai is going to be expired on September 2014. Like Airtel, Vodafone and Idea Loop also filed a case against Government for 10 years license extension.

It's obvious that Airtel and Loop's merged entity will be the market leader in Mumbai with 30% market capture, but Airtel's main concern is to get Loop's 8MHz spectrum on 900MHz band which is more efficient than 1800MHz and helps to cut down capital expenditure. Though nothing was confirmed and no valuation is fixed, if Loop get the 10-year extension the valuation will definitely go up. But everything depend on when Govt. comes with M&A rules and regulation for telecom sector.

Recent Comments

Faraz :

Does Bharti Hexacom provide Airtel 5G services in N.E and Rajasthan Or Both are offering 5G seperately ? Who bought…

Bharti Hexacom IPO Set for April 3, TCIL to Sell…

Faraz :

Nice.. & BSNL 60 Mbps is even perfect plan for many if there are more than 5 devices connected. Many…

BSNL 60 Mbps Plan is Likely One of the Best…

Faraz :

Budget phones have degraded more than any other budget phones since pandemic. They are still selling some craps like Helio…

POCO C61 to Launch on March 26, 2024

shivraj roy :

i feel Vi has improved than what it was in 2022 i usually get around 8-10mbps in very heavily dense…

5G Users Consuming 3.6 Times More Data than 4G Users…

biswadeepmondal :

JioAir Fiber is working very well in KPA & HLR. Sadly they don't have any data only plan.

REP: Airtel Expands Network Footprint in Bankura District of West…

Load More
Subscribe
Notify of
49 Comments
newest
oldest most voted
Inline Feedbacks
View all comments