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TTML, RCom spurt on buzz DoT not to scrap dual-tech telecom licenses

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Capital Market
Last Updated : Jul 01 2013 | 4:30 PM IST

Reliance Communications (RCom) (up 11.85%) and Tata Teleservices (Maharashtra) (TTML) (up 4.91%), edged higher.

The BSE Sensex was up 144.65 points, or 0.75% at 19,540.46.

In a reprieve for holders of dual-technology telecom licences, such as Tata Teleservices and RCom, the Department of Telecommunications (DoT) has reportedly decided that such licences will not be scrapped.

Dual-technology operators are those offering services on both GSM and CDMA platforms. Tata Teleservices holds 19 such licences across the country, while RCom owns 22, reports suggest.

The Tata group operates mobile services through two companies - the listed Tata Teleservices (Maharashtra) and unlisted Tata Teleservices. Tata Teleservices (Maharashtra) offers CDMA-based services in the Maharashtra and Goa circles, while Tata Teleservices operates in 18 circles.

RCom has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain.

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RCom announced during trading hours today, 1 July 2013, that it has completed full repayment of two syndicated ECB loan facilities of $500 million each, aggregating $1 billion, during the quarter ended 30 June 2013. These loans were availed in the year 2007 from a group of international banks.

In addition, RCom has made scheduled repayments of another $207 million (Rs 1200 crore) in respect of other foreign currency loans, on the respective due dates during the quarter ended 30 June, 2013. The repayments have been from RCom's rupee resources.

RCom said its foreign currency debt is steadily declining every year, and the interest outgo on such debt is fully covered by dollar denominated earnings from the Reliance Globalcom business.

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First Published: Jul 01 2013 | 3:22 PM IST

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