After a year-long investigation, DoT proposes to send a showcause notice to Loop Telecom asking it to explain why its universal access service (UAS) licences for 21 operating areas should not be terminated. The investigation carried out by the Ministry of Corporate Affairs into the ownership and control of Loop has reportedly found that the Essar Group has significant indirect control over Loop Telecom. However, according to the UAS licence regime, no licensee should hold more than 10 per cent equity in another licence-holder operating in the same service area. The Essar Group, through firms registered in India and Mauritius, owns 33 per cent of Vodafone Essar, besides the significant control it indirectly exercises over Loop Telecom.