Telecom shares rally on TRAI recommendations

Bharti Airtel surged 6% to Rs 356, Idea Cellular up 5% to Rs 147, while RCom and TTML gained 3% each at Rs 135 and Rs 13 respectively.

Shares of telecom services providers such as Bharti Airtel, Idea Cellular and Reliance Communications (RCom) are trading higher by up to 5% after the telecom regulator authority of India (TRAI) recommended allowing sharing of all categories of airwaves held by operators, the move could help companies to reduce cost of mobile services.

Bharti Airtel has surged nearly 6% to Rs 356, followed by Idea Cellular (up 5% to Rs 147), RCom and Tata Teleservices (Maharashtra) gained 3% each at Rs 135 and Rs 13 respectively.

TRAI on Monday after market hours recommended allowing sharing of all categories of airwaves held by operators including spectrum allocated at old price of Rs 1,658 crore or assigned without auction.

The move to allow sharing of all kind of airwaves if approved by the government will benefit incumbent players like Airtel, Vodafone, Idea Cellular, Reliance Communications, Aircel and Tata Teleservices to bring down cost of spectrum ownership, the PTI report suggests.