"We have no other option. The company has already advertised in newspapers for shifting our customers on other network through MNP (Mobile Number Portability)," a Loop Telecom spokesperson said.
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Loop Telecom To Close Down Operations Ouside Mumbai
Loop Telecom has turned the third mobile operator to close shop after a Supreme Court decision during February called off 122 licences comprising Loop’s.
The sources said that the operator has ordered all its GSM customers in its 13 circles of operation to port out latest by April 30 as it proposes to entirely stop functioning by May 15.
As per the company’s declaration, “Loop Telecom is in the process of complying with the directive of the Honorable Supreme Court of India.”
The company has a subscriber base of around 6,000 that translates into a miniscule 0.00066% share of the country telecommunication market.
The said development would not have any impact on Loop Mobile that functions in the Mumbai circle and has approximately 32,50,000 subscribers in Mumbai.
According to Loop Mobile, “Loop Mobile is Mumbai’s non-stop operator with a strong subscriber base of over 3 million customers across over 50 Loop Mobile galleries in Mumbai.”
Both Loop Telecom and Loop Mobile are possessed by Essar Teleholdings.
Sources stated that Loop Telecom was already viewing an exit approach and the verdict to end accompanying the SC ruling was just a requirement.
An industry analyst stated, “Loop Telecom was among the first of the new operators to explicitly request for an exit option and refund of its entry fee. Thus, after the SC turned down the review petition over the 2G verdict, this was the next logical step, since Loop would have time only till June 2 to continue its operations.”
“In case there was a revision of the verdict or an extension of the deadline till the new 2G auctions slated for the end of the year, Loop may have stuck around,” the analyst added.
Shoubhit Khare, telecom analyst with Motilal Oswal, said, “Since the scale of operations was very small, the losses would be minimum. Besides, the operator had not rolled out services in many circles and so the question of dishonouring financial commitment does not arise.”
"We have no other option. The company has already advertised in newspapers for shifting our customers on other network through MNP (Mobile Number Portability)," a Loop Telecom spokesperson said.
Loop's move will impact only 6,100 customers, which is less than 0.01% of the number of mobile phone users in India.
Loop Telecom will close down operations by June 2, in all regions except Mumbai.
