Most telecom stocks gain on buzz spectrum auction may include one slot for 3G

Three telecom stocks rose by 0.01% to 1.15% at 13:02 IST on BSE on reports the government may include one slot for 3G services in the upcoming spectrum auction.

Meanwhile, the BSE Sensex was down 49.86 points, or 0.18%, to 27,552.15.

Among telecom stocks, Bharti Airtel (up 1.15%), Idea Cellular (up 0.14%), and Mahanagar Telephone Nigam (up 0.01%) edged higher. Tata Teleservices (Maharashtra) (down 2.5%) and Reliance Communications (down 1.94%) edged lower.

Incremental spectrum will ease pressure on incumbents witnessing licence renewals, reports added.

The auction of one slot of 2100 MHz would mean one more carrier offering 3G services in 17 telecom circles, where the defence ministry has agreed to vacate the spectrum, report added.

The news of additional airwaves being put up for sale will bring respite to the telecom industry, especially players such as Vodafone, Idea Cellular and Reliance Communications who face existential crises in regions where in case they don't win back their currently held airwaves in the 900 MHz band, they might have to shut shop owing to lack of alternative spectrum to fall back upon. With one block of 2100 MHz airwaves on sale, these operators can now breathe a sigh of relief, report said.

The telecom department had previously estimated proceeds from the sale of 3G auction at Rs 5000 crore, apart from the Rs 9355 crore it is expecting from 800, 900, and the 1800 MHz bands. The auctions are scheduled to begin on 23 February 2015, report said..

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