 "Loop-Bharti deal to get DoT nod")
The Department of Telecommunications (DoT) has agreed to approve the proposed transfer of assets of Loop Mobile (India) to Bharti Airtel.
According to a recent discussion, the DoT, based on the clarifications by Loop Mobile and Bharti Airtel, has stated that there was no specific provision or prohibition of slump sale in the licence terms or guidelines, and as Bharti Airtel and Loop Mobiles are meeting all the regulatory requirements and have addressed all concerns raised by Trai, the deal should be given a go ahead.
Earlier this month, Loop Mobile CEO Sandip Basu has written to the DoT secretary stating that non approval of the deal would lead to losses for Indian banks who have extended financing to Loop, as the company does not have the financial ability to repay the loans if the transfer or migration does not complete, and it is required to wind up operations.
The matter is on hold for about six months.
The companies have also facilitates number portability for all Loop subscribers addressing Trai's concern. The regulator has earlier has objected to the mandatory porting to Airtel, and asked Loop to ensure that subscribers get option to port out to any operator they wish.
Basu, in his letter, had also stated that the DoT's demand of about Rs 800 crore is subjudice and the matter is being heard in the TDSAT Loop has agreed to pay according to the final judicial determination.
Early this year, Loop entered into an agreement with Bharti to sell off its assets for Rs 700 crore.