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Shares of telecom companies weakened after the Cabinet on Wednesday approved a higher base price for 3G spectrum auction.
The Cabinet on Wednesday approved a base price of Rs 3,705 crore per megahertz (MHz) for 3G spectrum auction, a move which would help the government garner over Rs 1 lakh crore along with sale of other mobile frequencies.
The base price suggested by the Commission is around 11 per cent higher than what telecom firms paid for in the 2010 auction. It is also 36% higher than sectoral regulator TRAI's recommendation of Rs 2,720 crore per Mhz.
Bharti Airtel was down 2% at Rs 366 while Idea Cellular was down 2.3% at Rs 162.
