Loop Telecom to stop services outside Mumbai

Loop Telecom to stop services outside MumbaiTelecom service provider, Loop Telecom, which is accused of being involved in the massive 2G spectrum scandal, has said that it is shutting all of its services in the country except in Mumbai.

The overwhelming majority of the company’s subscribers, about 3.25 million out of the total 3.26 million, are in Mumbai. The company also said that it has demanded a refund of about 33.0 billion rupees along with an unspecified amount in damages from the government following cancellation of its license.

The Supreme Court of India had scrapped the validity of quashed all 122 spectrum licenses that were granted to firms during the former communications minister A Raja’s time in office. The court cancelled all the licenses on the ground they were issued in a “totally arbitrary and unconstitutional” manner. It also imposed a fine on three telecom companies that offloaded their shares after getting the licenses.

The company will continue to provide its services in Mumbai as the license for the circle was allotted to the company before 2008. A company spokesperson has urged the users that are in the affected areas to switch to other service providers using mobile number portability.

Loop has now become the third company to stop services following the order by the country’s Supreme Court. Etisalat DB Telecom, which is a joint venture between UAE’s Emirates Telecommunications and DB Realty as well as S Tel Pvt. Ltd, which is owned partly by Bahrain Telecommunications, have pulled out of the country after their licenses were cancelled.