The Telecom Regulatory Authority of India (TRAI) has asked the Department of Telecommunications (DoT) to speed up its decision regarding the transfer of mobile subscribers from Loop’s network to Airtel’s in Mumbai. Emphasising on the urgency of matter, TRAI has stated that Loop’s licence is set to expire in November 2014, and thus, DoT must take a final decision, while keeping the interest of consumers in mind.

In February 2014, Airtel announced the Rs 7 billion acquisition of Loop Mobile’s subscribers and infrastructure in Mumbai. Following this, in June 2014, TRAI had written to DoT stating that the transfer of subscribers should be allowed only through the mobile number portability route, as subscribers’ consent needs to be considered before switching them to another operator’s network.

However, the DoT’s initial view was in favour of allowing the deal on grounds that there was no bar on a slump sale under the existing licence conditions.  Further, Loop had argued that the deal in fact aims to save subscribers from going through the MNP process.

Given the differences in the views of the department and the regulator, the matter was referred to the legal advisor who recently opined that the deal between the two operators can go ahead if there is no ban on a slump sale in the telecom licence conditions.