Even as the broader markets saw a sell-off, top-listed telecom stocks Bharti Airtel and Idea Cellular gained one-four per cent. The Street believes with the auctions over, favourable competitive landscape led to the upward share-price movement.
The Supreme Court on Thursday allowed the government to finalise the spectrum auction bids and collect the initial payment amounting to Rs 28,000 crore out of Rs 1.09 lakh crore from the successful telecom companies before March 31.The court,
Cellphone operators are snatching up precious bandwidth in a government sale, paying top dollar for spectrum to roll out high-speed coverage across India. The fear among investors is that the companies' balance sheets may now be under pressure.
The government’s assured revenue from the auction of telecom spectrum stood at Rs 1,07,000 crore at the end of the 74th round, on the 12th day of bidding. On Monday, bids stood at Rs 1,03,046 crore. The auction will continue on Wednesday.
Shares of telecom services providers such as Bharti Airtel, Idea Cellular, Reliance Communications and Tata Teleservices (Maharashtr) have rallied by up to 10% on the bourses in otherwise subdued market.
Flush with an investment outlay of $ 3 billion a year on networks, telecom major Bharti Airtel plans to double its 4G network by next fiscal as it gears up to take on competition, including the much-awaited foray of Mukesh Ambani-led Reliance Industries
Taking on social networking giant Facebook's ambitious 'free internet' plans, telecom major Bharti Airtel chief Sunil Mittal has said the companies should do 'philanthropy' if they stop charging for mobile internet.
Four days into the telecom spectrum auction, the government’s assured revenue from the sale stands at Rs 86,000 crore. The spectrum auction, the biggest so far, is the first under the current central government.
At the end of the third day of the telecom spectrum auction, overall bids received were Rs 77,000 crore. At the end of the first day, the estimated bids stood at Rs 60,000 crore and the second day at Rs 65,000 crore.
For incumbent telecom operators, history is repeating itself. As in the previous round in February last year, this time, too, these operators are putting most of their money in trying to retain their 900-MHz spectrum.
The biggest ever auction of spectrum by the Department of Telecommunications (DoT) started on Wednesday in the morning where government expects to garner Rs 80,000-1lakh crore from the sale of spectrum.