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Telecom stocks rise on relief measures for sector

Press Trust of India  |  New Delhi 

Telecom stocks gained as much as 4 per cent in morning trade after the Cabinet approved relief measures for the financially stressed sector. The Cabinet yesterday allowed telcos to pay for spectrum over 16 years instead of 10 years and permitted them to hold more airwaves. It also relaxed caps on holding spectrum, helping ongoing mergers like that between and Idea as the combined entity would have breached the current limits in certain circles or telecom zones. Reacting to the development, shares of spurted 2.62 per cent to an intra-day high of Rs 414, while jumped 4.39 per cent to an early high of Rs 83.10 on BSE. The index also went up by 2.04 per cent to a high of 1,378.50 in morning trade. The spectrum cap relaxation would also help billionaire Mukesh Ambani's Reliance to acquire the spectrum of in certain bands. The decision of the Cabinet headed by came after a majority of telecom companies flagged their concerns over severe financial stress facing the sector due to intense competition unleashed by Reliance Jio's rock-bottom tariffs.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 08 2018. 11:20 IST