Five telecom stocks rose by 0.86% to 1.79% at 9:41 IST on BSE after the Union Cabinet on Friday, 3 August 2012, approved reserve price of Rs 14000 crore for 5 MHz pan India in 1800 MHz band.
Reliance Communications (up 1.79%), Tata Teleservices (Maharashtra) (up 1.42%), Bharti Airtel (up 1.16%), MTNL (up 1.09%) and Idea Cellular (up 0.86%), edged higher.
The BSE Sensex was up 205.84 points or 1.20% at 17,403.77.
The Union Cabinet also approved the recommendation of EGoM on telecom for reserve price for 800 MHz band at 1.3 times that of 1800 MHz band. Existing slab rate system for Spectrum Usage Charges (SUC), as recommended by EGoM, as the preferred option has also been approved by the Cabinet. The reserve price and SUC are essential for the 2G spectrum auction bid process, which is being implemented expeditiously by the Department of Telecommunications, a government statement said.
As recommended by the Empowered Group of Ministers (EGoM), the Cabinet decided to defer the issues related to pricing of spectrum pending ascertainment of the developments/ outcome of the ongoing proceedings before the Supreme Court in the Presidential Reference and that all questions relating to the pricing of Spectrum currently held by Telecom Service Providers and related issues including pricing of contracted spectrum, excess spectrum, prospective/ retrospective pricing be considered thereafter.
The Telecom Regulatory Authority of India (Trai) had earlier recommended a minimum reserve price of around Rs 3622 crore per MHz, amounting to over Rs 18000 crore for 5 MHz across the country.
Powered by Capital Market - Live News
