Bharti Airtel today said Loop Mobile’s 3 million subscribers in Mumbai will join Airtel’s over 4 million subscribers in the metro.
This will be the end of the Loop Mobile brand which did not have a national presence. Since the firm did not participate in the spectrum auction, it was clear that one leading operator will buy Loop Mobile at a throw away price.
Airtel did not term today’s announcement as acquisition. It is believed that the size of the deal would be around Rs 700 crore.
The company does not share specific details on transition of Loop Mobile team members including its top management.
Started its services in 1995, Loop Mobile (erstwhile BPL Mobile), which currently operates in Mumbai with 3 million subscribers, has consistently met and exceeded TRAI benchmarks. Loop Mobile is the only operator offers multiple choice of network to its subscriber while roaming across India. It is reported that Loop Mobile has high ARPU customers.
The company started its operations in 1995 as BPL Mobile. Subsequent to the change of shareholding in 2005, the Khaitan Holdings Group took ownership control. In 2009, the brand name changed from BPL Mobile to Loop Mobile. In Mumbai, Loop Mobile has completed over 16 years of service.
The acquisition will be a blow to Vodafone which will become the second largest telecom operator in Mumbai, behind Bharti Airtel.
Airtel said the proposed association will undergo seamless integration once definitive agreements are signed, and is subject to regulatory and statutory approvals.
The proposed transaction will bring together Loop Mobile’s 2G/EDGE enabled network supported by 2,500 plus cell sites, and Airtel’s 2G and 3G network supported by over 4,000 cell sites across Mumbai. It will also offer customer services at 220 outlets.
Loop Mobile’s subscribers can benefit from Airtel’s products like 3G, 4G, Airtel Money, VAS and domestic/international roaming facilities.
