Largest telecom operator of India Bharti Airtel signed a strategic agreement with Loop Mobile on 18 February 2014. Under the agreement Bharti Airtel will acquire the mobile network and 3 million subscribers of Loop Mobile in Mumbai circle.
With this deal, Bharti Airtel will become the largest mobile operator with 7 million subscriber base in Mumbai relegating Vodafone to second position with 6.8 million subscriber base.
The proposed transaction will bring together Loop Mobile’s 2G/EDGE enabled network supported by 2500 plus cell sites, and Airtel’s 2G and 3G network supported by over 4000 cell sites across Mumbai.
It will also offer subscribers the widest exclusive retail reach with 220 outlets that will enable best-in-class customer service.
The deal between Airtel and Loop is expected to stand at 700 crore rupees. Loop will use these sale proceeds for repaying debt of 400 crore rupees and the rest will go to promoters IP Khaitan and family. Loop is the oldest mobile service provider in Mumbai.
This deal assumes significance as customers of Loop Mobile will get continuity of services. Licence of Loop Mobile will expire in September 2014.