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Investment  19, Feb 2014

Airtel announces strategic agreement with Loop Mobile

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The Indian telecom major to acquire Loop’s subscribers and some assets for US$113M; also announces crossing 200 million users in the country

Indian telecom major Airtel has made an official announcement of its strategic agreement with Loop Mobile. It has also crossed the 200 million mobile users mark in the country.

According to the agreement, Airtel will not take over the management and employees of Loop, but will get all its subscribers and assets, including towers, retail outlets etc. As per industry estimates, the deal is worth INR 700 crore (US$113M).

In terms of users, Loop Mobile’s three million subscribers will join Airtel, taking the latter’s user base in Mumbai to over seven million. Also, Loop users will now get access to Airtel’s 3G, 4G and Airtel Money services.

Loop was required to participate in the telecom spectrum auction that concluded on February 13, 2013 to win back its spectrum for continuing operations. Loop holds eight MHz of airwave frequency in 900 MHz ban. Since the service provider did not participate in the auctions, its services shall not get renewed.

Read Also: SingTel prepaid customers can now Facebook all they want in Singapore

Airtel is now in its 20th year and announced crossing 200 million subscribers in India today. “(Airtel) has crossed the 200 million mobile subscriber mark in India, further consolidating its leadership position in the world’s second-largest mobile market,” said the company’s official announcement.

The telecom service provider crossed its first 100 million user mark in 2009. Airtel got its mobile telephony permit in 1994 and started its operations in 1995.

In January, Airtel reported a jump of 2.15 times in consolidated quarterly profit during October-December quarter. Its mobile internet business marked a jump of 105.2 per cent in revenues over the same period last year.

Featured and Lead Image Courtesy: Airtel

Saloni Surti

Saloni Surti

A writer by heart, Saloni loves pouring words about anything and everything under this sky. Short stories and philosophy writing come to her naturally.

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