Bharti, Idea up 4% on TRAI's proposal to cut reserve prices
TRAI slashed the combined spectrum auction reserve price in the premium 900 MHz band in the circles of Delhi, Mumbai and Kolkata by about 79 percent to Rs 650 crore per MHz against Rs 3,074.18 crore per MHz earlier.
September 10, 2013 / 12:40 IST
Moneycontrol Bureau
Telecom stocks rallied in early trade Tuesday after Telecom Regulatory Authority of India (TRAI) recommended steep cuts in reserve prices for the next round of spectrum auctions.At 9:40 hours IST, shares of country's largest telecom operator Bharti Airtel gained more than 4 percent to Rs 327.05 followed by Idea Cellular with 4.17 percent gains at Rs 164.70 on the BSE. MTNL rose 2.33 percent while Reliance Communications and Tata Teleservices advanced over 1 percent.Also Read -
TRAI's suggestions on reserve price for spectrum auctionThe telecom regulator said no spectrum would be reserved for existing players when their licences expire and suggested that airwaves can be traded. TRAI slashed the combined spectrum auction reserve price in the premium 900 MHz band in the circles of Delhi, Mumbai and Kolkata by about 79 percent to Rs 650 crore per MHz against Rs 3,074.18 crore per MHz earlier.The maximum reduction of 81.38 percent is in the Mumbai circle, where the floor price has been reduced to Rs 262 crore per MHz compared with Rs 1,404.28 crore per MHz of spectrum, as per the regulator's previous recommendation. It recommended an about 60 percent cut in the pan-India reserve price for the third round of 2G spectrum (1800 MHz) auctions compared to its previous suggestions. TRAI has proposed Rs 1,496 crore per megahertz of airwave frequencies in the 1800 Mhz band in a minimum lot of 5 MHz for new players, which comes to Rs 7,480 crore, compared with its earlier suggestion of Rs 18,200 crore.The government is required to conduct the third round of spectrum auction for 1800 Mhz to comply with a Supreme Court order. The entire spectrum freed from the cancellation of 122 licences in February 2012 in the 2G spectrum allocation case has to be auctioned.The regulator has suggested a lower reserve price even in service areas where spectrum was sold in November 2012. The government has to auction the premium 900 Mhz band being held Airtel, Vodafone and Loop in some circles as their licences expire in the second half of 2014. No priority will be accorded to these licensees, the regulator said. (With inputs from PTI) Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
