Online:
Visits:
Stories:
Profile image
By Wat Blog - Connecting Web - Advertising - Technolog (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Bharti Airtel To Acquire Loop Mobile For Rs.700 Crore

Sunday, February 16, 2014 23:19
% of readers think this story is Fact. Add your two cents.

(Before It's News)

India’s leading Telecom Service Provider Bharti Airtel is all set to buy a relatively smaller player, Loop Mobile.

loop

Six months after contemplating the issue, Bharti Airtel has finally decided to acquire Loop Mobile for a round figure of Rs. 700 Crores (US$ 113 Million). As part of the deal, Airtel will not only get an immediate boost in subscriber addition, it will also gain hold of Towers and other Network Assets of the company. Currently Loop’s 99% owners, the Dubai based Khaitan Family is likely to make the formal announcement within two days.

At 3.2 Million subscribers, Loop Mobile may be a small player, but it is very important to Airtel. Loop is active only in Mumbai, but its Blended Average Revenue Per User (ARPU) is over Rs 225, which in turn is way above the industry average of Rs. 100 and higher than Airtel (Rs. 195) too. Loop Mobile’s customers are clearly spending a lot more on their Monthly Bill and that should help Airtel to boost its earnings.

However, besides the earning part, Airtel will also gain a strategic boost in terms of Subscriber Base. With 4.1 Million subscribers in Mumbai, Airtel was unable to secure a lead position in the City. Currently, with 6.8 Million subscribers Vodafone is the clear leader. But add the 3.2 Million Users and Airtel races ahead to the pole position.

Another interesting technical aspect of the deal is the inability of Airtel to secure a very lucrative piece of spectrum that Loop Mobile has within its control. Moreover, Loop’s Rs. 400 Crores Debt will now be added to Airtel’s Accounts.

Airtel is certainly a large telecom player and neither the acquisition, nor the debt amount can make a noticeable dent in the company’s finances. However, it will be interesting to see what Airtel does to retain Loop’s subscribers now that MNP is gaining acceptance. What do you think?

Source | afaqs

Looking For A Social Media Agency?? – Contact WATConsult – India’s Leading Social Media Agency



Source: http://www.watblog.com/2014/02/17/bharti-airtel-to-acquire-loop-mobile-for-rs-700-crore/

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.