Loop Mobile aims to give 3G experience with 2G

With over 3 million GSM subscribers in Mumbai circle, largely dominated by pre-paid customers and the MNP in waiting, Loop Mobile, formerly known as BPL Mobile, is all set to attract new subscribers and aims to double its market share in the next two years.

Sandip Basu, Loop Mobile’s whole time director and CEO, talks to Pankaj Maru of CyberMedia News about the company's plans to increase its subscriber base, investments in technology and networks, new services similar to 3G services, trends in telecom industry and the impact of 2G scam. Read on:

What are the strategies that you have in the Mumbai circle to increase the subscriber based in 2011?

Mumbai circle has already 100 per cent plus penetration and so primarily it is a churn market, where we have excelled our business in the past 15 years with our experience in this circle. So in past one year we have consciously made investments and upgraded our networks.

We have invested nearly a 100 million dollars in the networks with in excess of over 2000 outdoor sites and 500 building sites. We have upgraded our entire networks with the latest SDR technology which amongst other things is very efficient and reduces carbon foot print. Also, it gives higher speeds for data access. So all of these combined make us number one network in Mumbai.

Also we have got 10 GHz in the 900 MHz bandwidth, which is the most efficient bandwidth you can offer, so this basic parameter enables us to give a better quality of network services to subscribers and we think with the mobile number portability (MNP) coming, we are very well positioned in the market to get the better share post the MNP.

Our market share incidentally has gone up from 8.5 per cent last year to 10 per cent this year and expect to get it doubled in Mumbai circle in the next 2 years.

While some large telcos have rolled out 3G services in some circles including Mumbai, how Loop is placed on the 3G services front?

We already have in our stable various 3G-like services, which we are about to launch, like the video streaming, news updates both on video and audio, new net messenger that is going to be a substitute of BlackBerry Messenger. Incidentally, that's a first kind of messenger launched by an Indian operator where you can interact with others through multiple chats.

And, most interestingly, now we would be coming out with something called Loop Mail, where your mobile number is going to be your email ID and through an SMS-based application you can send/receive emails on handsets. The handset need not be a BlackBerry, but even a smart phone will do.

So, with these things we think our customers will get the same level of experience as 3G services. These services will be launched in the next quarter.

When you look at the Indian telecom market, especially a circle like Mumbai, which has so many operators with strong competition, do you think that the industry will see any kind of consolidations in the coming years?

The telecom space has always seen a consolidation process ever since it has come into India. And even internationally, mergers and acquisitions are things that keep happening in this space. Yes, I do feel there would be consolidation going forward in future as certain players may be little too unrealistic for the market as there are too many players.

Is Loop exploring acquisitions and looking at entry into other circles in India?

As of now, we don’t see such thing to happen as Loop is a pan-India company with pan-India licence and happen to be operating in Mumbai circle for the past 15 years. We have rolled out in circles where we have got spectrum and also have commercially launch in 8 circles and will roll out services in the remaining circles once we get permission from DoT.

Do you think that telecom industry, which has been hit by the 2G scam, will have any impact on foreign investments, investors and overall market sentiments?

I think there has been various development in the last 15 years in the telecom space but nothing has withered investments till date. And I am confident that it will continue in future too.