Telecom shares plunge on 2G spectrum price hike moveApril 24th, 2012 - 3:00 pm ICT by IANS
New Delhi, April 24 (IANS) The share prices of telecom firms fell sharply Tuesday, a day after the regulator proposed a high reserve price for the 2G spectrum to be auctioned.
At the Bombay Stock Exchange, shares of the country’s largest telecom firm Bharti Airtel were trading 3.12 percent lower at Rs.302.90 in the afternoon session. Idea Cellular plunged 3.78 percent at Rs.80.10.
Reliance Communications was ruling 1.29 percent lower at Rs.80.45.
The Telecom Regulatory Authority of India (TRAI) Monday proposed a reserve price of Rs.3,622 crore for the auction of 1MHz of pan-India 2G spectrum in the 1800 megahertz band, as compared to Rs.380 crore in the 2008 sale.
According to operators and sector analysts, if the recommendations are accepted, it would raise costs for players and eventually make mobile telephony more expensive for the subscribers.
Uninor, a joint venture between Norway’s Telenor and India-based Unitech, has said some of these recommendations would create “severe negative impact” on the industry.
“It is up to the political leadership of India now to ensure that the gains of the past few years of affordable phone calls for India’s people are not undone.”
The Cellular Operators Association of India (COAI) and the Association of Unified Telecom Service Providers of India (AUSPI) in a joint statement expressed shock at the recommendations and termed them as being arbitrary, regressive and inconsistent.
The regulator has been formulating recommendations for the auction of 2G spectrum policy in the wake of the Feb 2 Supreme Court order cancelling 122 telecom licences issued in 2008.
The apex court had asked the affected firms to shut shop in four months. At the same time, the court had asked the government to re-distribute these licences to firms through an auction in the due time.
TRAI has said all spectrum to be assigned through the auction process in future shall be liberalised, which means spectrum in any band can be used for deploying any services in any technology.
- TRAI sets high base price for 2G auction, operators cry foul (Lead) - Apr 23, 2012
- No decision on 2G pricing, EGoM favours refarming spectrum - Jun 05, 2012
- Uninor to file interim application in Supreme Court - May 01, 2012
- Reserve price of spectrum major concern: COAI - Jun 30, 2012
- EGoM to take final call Tuesday on spectrum pricing - Jun 04, 2012
- GSM players to contest TRAI theory of minor tariff hike - May 07, 2012
- Telecom Commission seeks clarity on TRAI proposals - Apr 30, 2012
- Telenor writes down remaining Indian assets worth $680 mn - Apr 30, 2012
- Operators urge Sibal to auction total spectrum, reduce reserve price - Apr 27, 2012
- TRAI recommends high base prices for 2G auction - Apr 23, 2012
- Telecom tariffs may rise by 90 paise in metros: Study - May 22, 2012
- Call rates can rise 100 percent, warn telecom operators - May 03, 2012
- EGoM to decide on spectrum pricing Thursday - Jun 20, 2012
- Telecom honchos to meet Sibal - May 02, 2012
- Telecom Commission to meet Thursday on TRAI recommendations - May 23, 2012
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