More reports on: Telecom, Loop Mobile / Loop Telecom

Vodafone restores connection to Loop Mobile users

18 June 2014

GSM operator Vodafone India has restored connections to Loop Mobile users, more than 24 hours after it was disconnected, citing non-payment of interconnect usage charges (IUC).

The restoration came after the companies resolved the IUC issue.

''Loop Mobile regrets the inconvenience caused to subscribers in Mumbai. This was due to a financial disagreement between Loop Mobile and Vodafone which has now been resolved. The voice calling services shall start shortly,'' a Loop Mobile spokesperson said.

The companies were in the process of resuming the services, even as many customers said that they could make calls to Vodafone India customers.

''We have reached an agreement for payment settlement with Loop Mobile. Accordingly the connection is being restored,'' a Vodafone India spokesperson said.
On Monday, Vodafone India barred all incoming calls from Mumbai's oldest operator, citing non-payment of IUC.

Users, who tried to call Vodafone numbers, got a recorded message stating the calls cannot be completed due to non-payment of interconnect due. It also urged the subscribers to get in touch with their telecom service provider (Loop Mobile).

Loop Mobile, with operations only in Mumbai circle, has more than three million users on its network. At present Vodafone India, a subsidiary of British telecom major Vodafone Group, has the largest number of users in Mumbai circle.

As per Telecom Regulatory Authority of India, a mobile operator on whose network a call originates has to pay charges to the telecom company on whose network the call terminates. The current termination charge is 10 paisa a minute.

In February, Bharti Airtel – the country's largest operator by revenue and subscribers – acquired Loop Mobile to strengthen its presence in the metro.

While financial details of the deal were not disclosed, media reports had pegged the deal size at Rs700 crore (See: Bharti to buy Loop Mobile in Rs700-cr deal: report).
Bharti to buy Loop Mobile in Rs700-cr deal: report

Under the agreement, Loop Mobile's subscribers will join Airtel's more than 4 million subscribers, making it the largest service provider on user basis in the metro.

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