It becomes the third mobile phone operator, after Etisalat DB and S Tel, to wind up operations following the Supreme Court’s February 2 directive which cancelled all 122 mobile permits issued by former telecom minister A Raja.
According to sources, Videocon Industries’ could be next to wind up. Videocon, too, lost all its licences, except in Punjab.
Loop Telecom, majority owned by IP and Kiran Khaitan (sister of Essar Group promoters – Ravi and Shashi Ruia), who have been chargesheeted by the CBI, for allegedly violating telecom licensing rules, will shut down operations by June 2, in all regions with the exception of Mumbai.
Loop’s move will impact only 6,100 customers, which is less than 0.01 percent of the number of mobile phone users in India.