Loop Telecom has attributed its inability to roll out services within the stipulated time frame to the uncertainties in the telecom sector, as well as to the Department of Telecommunications (DoT).

In a written correspondence to DoT, Loop said that the uncertainties in the sector had resulted in its bankers not only refusing to provide future funding, but also prematurely closing earlier loans before the due date in addition to increasing the interest rates and cash margins.

Loop added that it had spent Rs 20 billion, a majority of which was arranged as a loan from a consortium of banks for undertaking the first phase of rollout, and had commercially launched services in 11 circles. For the second phase, the company said it required about Rs 5 billion of additional funding that was to be arranged through equity and bank loans.

Loop also said that it had failed to obtain a loan from the State Bank of India, as DoT had refused to sign the tripartite agreement with the bank, until the uncertainties in the sector died down.