New Delhi: Mumbai-based Loop Mobile has sought time till October 31 to comply with telecom regulator Trai's direction of informing all its customers about closure of services. In a letter dated September 30, Trai had asked Loop Mobile to inform date of closure of its services in Mumbai to all subscribers either in writing or by sending an SMS or e-mail within 10 days.
"We have not informed our subscribers till now as it will create confusion. We have sought time till October 31 from Trai and before that we hope to get approval from Department of Telecom for the deal," a source in the company said.
The company, in June, 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. According to sources, in order to get a speedy approval, Loop has offered to limit the deal to subscribers only, leaving aside its telecom equipment. 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. Loop Mobile, in March, had informed the Department of Telecom (DoT) 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.
DoT estimates that Loop Mobile and its other sister concern owe 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.
