Loop Telecom on Wednesday gave an offer to the government to auction its licence and spectrum in over 21 circles.
In a brief submission to the Supreme Court, it said it had no intention of causing a loss to the government. It said as a result of the present proceedings and the resultant media speculation, it had become extremely difficult to do business in the normal course.
Loop is one of the new telecom operators under scrutiny on allegations that they were given pan-India licences and spectrum in violation of rules.
The company requested the court to accept its plea and have it implemented expeditiously and in a time-bound manner. It said in the event the government got a value higher than what Loop had paid, it requested that it retain the difference after paying Loop Rs 1,454 crore — the money it had paid for its all-India licence.
Loop also requested it be given the right to match the highest offer, so as to get an opportunity to recoup the investments it had made in setting up the business.
The company is under a scanner for another reason. The investigating authorities say the Essar group had more than 10 per cent stake in the company when it was awarded the licence. A telecom company cannot have more than 10 per cent stake in another company operating in the same circle. The Essar group owns a 33 per cent stake in Vodafone Essar Ltd.
However, the Essar group, in its affidivat to the Supreme Court, has said its stake in Loop Telecom is much below 10 per cent.
According to industry data, Loop Telecom operates in eight circles, but has an insignificant subscriber base. But together with Loop Mobile, a part of the group, which operates in Mumbai, it has three million customers.
The Comptroller & Auditor General of India had earlier said the government made a notional loss of Rs 176,000 crore by giving licences to new operators at 2001 prices. However, many new telecom operators say with competition becoming fierce, there are hardly any investors willing to pay a premium. Some operators even sounded out the government if it was willing to take back the licence and return the fee. The department of telecom, however, rejected the proposal.
