Telecom stocks mixed after Govt OKs spectrum auction

Telecom stocks were mixed at 10:29 IST on BSE after the Union Cabinet yesterday, 5 January 2014, approved the largest ever telecom spectrum auction.

Reliance Communications (up 0.73%) and Idea Cellular (up 0.16%), edged higher.

Bharti Airtel (down 0.90%) and Tata Teleservices (Maharashtra) (down 4.63%), edged lower.

The S&P BSE Sensex was down 530.26 points, or 1.90% at 27,312.06.

The Union Cabinet, chaired by the Prime Minister Narendra Modi, yesterday, 5 January 2015, approved the proposal of the Department of Telecom (DoT) to proceed with auction in 800, 900 and 1800 megahertz (MHz) bands. The reserve price approved is Rs 3646 crore pan-India per MHz in 800 MHz, Rs 3980 crore for 900 MHz band pan India excluding Delhi, Mumbai, Kolkatta, and Jammu and Kashmir (J&K), and Rs 2191 crore pan India (excluding Maharashtra and West Bengal) in 1800 MHz band.

The quantum of spectrum to be put to auction is 103.75 MHz in 800 MHz band in all service areas, 177.8 MHz in 17 Licence Service Areas (LSAs) in 900 MHz band and 99.2 MHz in 15 LSAs in 1800 MHz band. Thus a total of 380.75 MHz in 800, 900 and 1800 MHz is being put to auction. Payment terms, eligibility criteria and auction objectives shall be as in the previous auction of Februay 2014, a press statement said.

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