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Telecom pivotals in demand

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Capital Market
Last Updated : Jun 17 2014 | 8:46 AM IST

Shares of three mobile operators rose by 1.40% to 2.80% at 15:03 IST on BSE after the telecoms regulator allowed carriers to offer free nationwide mobile roaming to subscribers for a fixed fee from 1 July 2013.

Bharti Airtel (up 2.80%), Idea Cellular (up 2.76%) and Reliance Communications (up 1.40%), edged higher.

The S&P BSE Sensex was up 137.03 points, or 0.71% at 19,314.96.

As per the Telecom Regulatory Authority of India (TRAI) mandate, outgoing local call charges, while on roaming, will be capped at Rs 1 per minute from Rs 1.40 earlier, while outgoing STD charges, while on national roaming, have been capped to Rs 1.50 from Rs 2.40 per minute earlier.

The ceiling tariffs for incoming calls while on national roaming have been reduced from Rs 1.75 per minute to 75 paise per minute, TRAI said. Outgoing local SMS-es will cost Rs 1, while outgoing STD SMS will cost Rs 1.50. Incoming SMS will remain free of charge. The changes will be effective from 1 July 2013.

India is divided into 22 telecoms zones. Currently, subscribers pay an additional fee for making and receiving calls when they are outside their home zone.

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The government had earlier proposed to completely abolish roaming charges, but the regulator said today that would not be practicable at this juncture, because telecoms companies would not be able to recover their costs.

Meanwhile, Bharti Airtel has completed the allotment of 19.98 crore new shares, representing 5% equity stake in the company, to Qatar Foundation Endowment (QFE). The shares, having face value of Rs 5 each, have been issued at a price of Rs 340 each on a preferential basis for a total consideration of Rs 6796 crore. The allotment marks one of the largest private equity transactions in the history of India, Bharti said. On 3 May 2013, Bharti and Qatar Foundation Endowment had announced a binding agreement for the share sale. As part of the entitlement, QFE is entitled to one seat on the board of Bharti.

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First Published: Jun 17 2013 | 3:14 PM IST

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