Loop Mobile Appeals to TDSAT on the right of extension of license without participating in the auction

By January 16th, 2014 AT 1:02 PM

Loop Mobile has appealed to TDSAT to extend its license and in the process be given the Right of First Refusal for the 900MHz of spectrum that it holds in Mumbai . This is in line with its earlier individual application demanding the right to retain the allotted spectrum by paying the market determined price without participating in the auction process .

Loop Mobile

Loop Mobile feels it has right of extension of licence which includes within itself the right to retain the spectrum already allocated. The Government has however gone ahead with auction of spectrum which is being held by LMIL and therefore strongly apprehend that this will cause grave prejudice to Loop Mobile by creating third party interest

This will ensure that incumbent operators like Loop Mobile who have made huge investments in building a network and have substantial subscriber base and revenue streams, the opportunity to protect the same without the uncertainty of auction is lesser .

The grounds of the petition is the license that was granted to Loop Mobile India Limited in 1994 was bundled/embedded along with the spectrum allocated in 900 Mhz band and forms an integral part of the license and constitutes it s basic foundation and feature, and hence the two cannot be separated. The extension of license for a further period of 10 years is an inherent contractual right forming an integral part of the license agreement. The term used in the licence agreement is ‘extension’.

Even otherwise Loop Mobile’s license is expiring in November 2014 and, therefore, Loop Mobile has full right to take the spectrum from the government even after February 2014 auctions.

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