Telecom stocks plunge as EGoM imposes one-time fees

Telecom stocks such as Idea Cellular, Bharti Airtel and Reliance Communication are trading weaker by 1-3% each on the Bombay Stocks Exchange after the empowered group of ministers (EGoM) imposed a one-time fee on incumbent operators prospectively for spectrum beyond 4.4 Mhz in GSM and 2.5 Mhz in CDMA. The cut of deadline will be the date when the cabinet clears the proposal.

Reports suggest that telecom companies which include Bharat Sanchar Nigam Ltd, Bharti Airtel, Vodafone,  Idea Cellular and Reliance Communications will bear the main brunt of over Rs 27,517 crore.

Idea Cellular is the top loser among the telecom stocks. It has plunged 3.2% to Rs 82.10 as many as 1,82,000 shares have changed hands on the BSE compared to its two-week average of 1,88,000 shares. Bharti Airtel and Reliance Communication are also trading weaker by upto 1% each.