Airtel – Loop Mobile deal has not violated any rules: DoT rejects TRAI’s objection

By July 1st, 2014 AT 2:21 PM

airtel-loopRecently TRAI has written to DoT saying the agreement between loop and airtel implies that subscribers will be port out involuntarily which was against MNP rules offering voluntary porting and objected the deal.

ET reports citing an official on anonymity ” TRAI  was factually incorrect in saying that Airtel was acquiring any resources of the government. Loop’s licence and corresponding rights to use spectrum are soon expiring, so Airtel is not really acquiring any resources of the government”  .

As of now Airtel is waiting for regulatory approvals before going ahead with the closure of the deal end of the day the deal will only help loop customers who can start using 3G and 4G services offered by Airtel. This merger will also help Airtel to emerge stronger in Mumbai with over 7 million subscribers. Loop, which enjoys highest ARPU in the circle and 30% postpaid customer base has only 44.36% active subscribers, which is second lowest in the market.

Now only time will tell when the deal gets regulatory approvals.

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