Bharti Airtel has called off its plans to acquire business and assets of Mumbai-based Loop Mobile, for about Rs. 700 crores, as the approval from DoT is still awaited as a result of which Bharti Airtel has withdrawn from the proposed transaction, Reports PTI.

As it estimates that Loop Mobile and its sister concern Loop Telecom owe about Rs 800 cr. in spectrum and other charges to the government.

Earlier on February 18, Bharti Airtel had announced the Rs 700 crore acquisition of Loop Mobile. Under the agreement, Loop's 3 million subscribers in Mumbai will join Airtel's over 4 million subscribers. It will also bring together Loop Mobile's network supported by 2,500 plus cell sites and Airtel's network supported by over 4,000 cell sites across Mumbai.

Telecom regulatory authority of India (TRAI) has already objected to the transfer of customers to other licensee. TRAI has earlier shot a letter to DoT objecting the contours of the deal. TRAI in its letter has said “On examination of the proposal of M/S Loop, the Authority is of the opinion that the proposed transfer will be against the present licensing terms and conditions and will also contravene the Telecommunications Mobile Number Portability Regulations 2009 (MNP)”.
 
TRAI has also said “Such an agreement also undermines the spirit of merger and acquisition guidelines. Therefore, the proposed transaction does not appear to be in line with the existing regulatory and licensing framework.”

Loop Mobile license is going to end in Mumbai on November 29, as the Loop Mobile did not purchase spectrum in February auction, which means Loop Mobile operations must be terminated.