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GSM operator Vodafone India and Loop Mobile have resolved an interconnect usage charges (IUC) issue that had put the latter’s nearly 3 million customers are in a spot. The companies were in the process of resuming the services between the two operators.
On Monday, Vodafone India barred all incoming calls from Mumbai’s oldest operator, citing non-payment of IUC. Users, who tried to call Vodafone numbers, got a recorded message stating the calls cannot be completed due to non-payment of interconnect due. It also urged the subscribers to get in touch with their telecom service provider (Loop Mobile).
“We have reached an agreement for payment settlement with Loop Mobile. Accordingly the connection is being restored,” a Vodafone India spokesperson said in an e-mail reply.
“Loop Mobile regrets the inconvenience caused to subscribers in Mumbai. This was due to a financial disagreement between Loop Mobile and Vodafone which has now been resolved. The voice calling services shall start shortly,” a Loop Mobile spokesperson said.
Loop Mobile has operations only in Mumbai circle. At present Vodafone India, a subsidiary of British telecom major Vodafone Group, is the largest operator by users in Mumbai circle.
Interconnection is linking up of one telecom operator to the infrastructure facilities of another and an operator levies charges depending on the network usage. It also includes termination charges, currently at 10 paise per minute.
In February, Bharti Airtel – the country’s largest operator by revenue and subscribers – had acquired Loop Mobile to strengthen its presence in the metro. While financial details of the deal were not disclosed, media reports had pegged the deal size at Rs 700 crore.
Under the agreement, Loop Mobile’s 3 million subscribers in Mumbai will join Airtel’s more than 4 million subscribers, making it the largest service provider on user basis in the metro. On completion of the acquisition, the New Delhi-based GSM operator would also be leader average revenue per user (ARPU) front.
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