Bharti Airtel looks all set to acquire Loop Mobile

Bharti likely to acquire Loop Mobiles, one of the oldest mobile operators in Mumbai. Bharti stands to become the top telecom operator in Delhi and Mumbai post the acquisition.

Published Date
03 - Sep - 2013
| Last Updated
03 - Sep - 2013
 
Bharti Airtel looks all set to acquire Loop Mobile

Bharti Airtel is all set to acquire Mumbai based Loop Mobile. The company owned by Dubai based IP Khaitan and family is one of the oldest cellular networks in Mumbai and also one of the most profitable.

Loop mobiles is looking to exit the telecom sector and has been in discussions with Airtel for some time. The deal will be finalised once the guidelines governing mergers and acquisitions in the telecom sector and the renewal fee for Loop's license, which expires in September 2014, become clearer. If the company does renew its 900 MHz licence for the next 10 years it will become a prized asset.

Bharti and Idea have spectrum in the 1800 MHz band in the Mumbai circle. Bharti Airtel's interest in the acquisition is the 8 MHz of spectrum in the 900 MHz frequency band that Loop uses which is more preferred by cellular companies as it is more efficient and requires a lesser number of cell phone towers. Loop generates among the highest average revenue per user (ARPU) per month and has nearly 30% post-paid subscribers.

Loop started its operations as BPL in 1995 and is now the fourth-largest operator in Mumbai with more than 3 million customers. Khaitan Holdings Group took ownership control of the company in 2005. The acquisition of Loop will help Airtel become the leader in Mumbai in terms of number of subscribers. However, Bharti and Loop Mobile's spokespersons have declined to comment on the deal, stating that it is market speculation.

Source: The Times Of India