Bharti Airtel Ltd.

Bharti Airtel, reportedly is in talks to acquire Loop Mobile, one of Mumbai's oldest cellular networks, given that its owners Dubai-based IP Khaitan and family are looking at exiting from the telecom sector. The acquisition of Loop will aid Airtel become the leader in Mumbai in terms of number of subscribers.

However, the final decision on the Loop Mobile-Airtel deal will await the clarity on guidelines governing mergers and acquisitions in the telecom sector and the renewal fee for Loop’s licence. Loop’s licence reportedly expires in September 2014.

8 MHz of spectrum in the 900 MHz frequency band that Loop operates in, basically is the factor which has enticed interest of various strategic players, including Bhart Airtel. The 900 MHz frequency band is preferred by cellular companies as it is more efficient, given that lesser number of cellphone towers are required, which in turns reduce the capital spend. The acquisition of Loop will help Airtel become the leader in Mumbai in terms of number of subscribers, thus boost it to the top slot in the key metros of Delhi and Mumbai.

Loop is the fourth largest telecom operator in Mumbai with over 3 million customers, as per July subscriber numbers. In 2005, Khaitan Holdings Group took ownership control of the company.