Trai directs Loop to inform closure date to subscribers

Loop Mobile's licences are to expire in November

Sectoral regulator Trai has directed Loop Mobile to inform date of closure of its services in Mumbai to all subscribers either in writing or by sending an SMS or email within 10 days.

"The Authority hereby directs Loop Mobile that it shall inform the date of closure of its services in Mumbai licensed service area to all its existing subscribers...Either in writing or by sending SMS/e-mail, within 10 days of issue of this direction," Trai said in a letter dated September 30.

The Telecom Regulatory Authority of India (Trai) said the mobile operator should also inform about every new subscriber at the time of his enrolment to its network.

"Loop Mobile is further directed to furnish the compliance report with regard to the direction within 15 days of issue of this direction," Trai said.

Loop Mobile had informed Department of Telecom (DoT), in a letter dated March 10 this year, that due to various commercial reasons, it was unable to renew the CMTS licence and would, therefore, cease to provide its services with effect from November 29, 2014.

Mumbai-based Loop Mobile's licences will expire in November after which it will not be able to offer telecom services. The company had to buy spectrum afresh to continue its operations but it did not participate in the auction held in February.

The company in June last had entered into an agreement with Bharti Airtel to sell its assets for about Rs 700 crore.

The deal, however, is yet to be approved by DoT.

DoT estimates that Loop Mobile and its other sister concern owes it about Rs 808 crore. The Department, according to sources, has held up the clearance related to the deal as the payment has not been made yet to the government.

No comment on this could be obtained from Loop Mobile when contacted earlier this week.