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Within 24 hours of blocking incoming calls from Loop Telecom users in Mumbai, Vodafone today said it is restoring their connection to its network as the two companies have reached a settlement on interconnection charges.
"We have reached an agreement for payment settlement with Loop Mobile. Accordingly the connection is being restored," a Vodafone spokesperson said.
Yesterday, Vodafone has blocked incoming calls from Loop, which has over 3 million users in Mumbai.
The telecom major said these payments from Loop were long overdue, forcing it to restrict calls.
A Loop Mobile spokesperson said: "Loop Mobile regrets the inconvenience caused to subscribers in Mumbai. This was due to a financial disagreement between Loop Mobile and Vodafone which has now been resolved. The voice calling services shall start shortly."
As per sectoral regulator Trai, a mobile operator on whose network a call originates has to pay charges to the telecom company on whose network the call terminates.
The current termination charge is 10 paisa a minute.
Vodafone is Mumbai's largest operator by subscribers currently. Loop Mobile is in the process of transferring its assets and customers to Bharti Airtel, under a strategic agreement announced in February. Although Airtel did not share the amount of the deal but industry sources estimated it to be worth Rs 700 crore.
