Loop seeks DoT's permission to return NLD licence

Mobile service provider Loop Telecom has asked the Department of Telecommunications (DoT) for permission to surrender its licence to offer national long distance services (NLD).

The department has approved the request, according to an internal note. However, it has asked its team to work out the dues of the company before starting the process of taking the licence back.

This is the second instance wherein a company has requested for surrender of its NLD licence. Last month, BT, the global telecom service provider, had asked DoT if it could return its licence in India to offer both international long distance (ILD) and NLD services.

Loop was given an NLD licence in 2006 but is yet to start a service, and has no subscribers. According to the licence agreement, a licensee has to inform its subscribers and licensor by giving a 30-day and 60-day notice, respectively. Since it has no such customer, Loop has requested the department to waive the notice period and treat the license as surrendered with immediate effect, said Loop's letter to DoT.

The licence comes with a financial bank guarantee (FBG) of Rs 20 crore and a performance bank guarantee of Rs 2.5 crore. DoT is likely to release the FBG after clearing all the dues.

BT Telecom India Pvt Ltd, which had secured the licences in 2007, had also requested for surrender of its NLD/ILD licences after it acquired i2i Enterprise Pvt Ltd, which is already providing both NLD and ILD services. "Due to the duplication of licences, BT Telecom India did not start services under the NLD and ILD licences and, therefore, the company has decided to surrender the same," BT had said in its application in March 2008.