Bharti Airtel has signed a definitive agreement to acquire its smaller rival Loop Mobile's subscribers, as well as some of its assets, for about INR 7 billion. The deal is subject to regulatory approvals and was first announced in February. Loop Mobile operates only in the Mumbai circle. As part of the deal, Bharti Airtel will take over around 3.2 million subscribers of Loop Mobile, its retail outlets and 400-500 of its cellular towers. The addition of Loop customers is expected to increase Bharti’s user base in Mumbai to over 7.3 million, the highest in the circle.
The deal will not provide any additional spectrum to Bharti Airtel; Loop’s 20-year licence in the 900 MHz spectrum expires in November. Bharti Airtel and Loop Mobile say the transaction would bring together Loop Mobile’s 2G/EDGE-enabled network, supported by about 2,500 cell sites, and Airtel’s 2G and 3G networks, which are supported by about 4,000 cell sites across Mumbai. It would also enable subscribers access to 220 retail outlets.
