Telecom stocks lower on EGoMs one-time license fee

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Telecom stocks lower on EGoMs one-time license fee
Bharti Airtel: Quotes, News
BSE 318.75BSE Quote0.35 (0.11%)
NSE 318.60NSE Quote0.4 (0.13%)
Stocks of telcom companies were trading lower on Tuesday after the Empowered Group of Ministers (EGoM) decided that all GSM operators with more than 4.4 megahertz (Mhz) spectrum will have to pay a one-time fee. This will be for the remaining period of their 20-year license.

Shares of telecom companies like Idea Cellular was down 3.31%, MTNL was lower by 0.99%, Bharti Airtel was dropped 0.94% and Reliance Communications shed 0.40% on the BSE at 11.40 am IST.

Operators with CDMA technology have been asked to pay for all spectrum over 2.5 Mhz.

As per a report in the Economic Times, Reliance Communications will be the most affected as it will have to pay up to Rs 9,906 crore. Bharti Airtel will have to pay Rs 4,400 crore, Vodafone Rs 2,836 crore and Idea Cellular Rs 2,499 crore.

The EGoM further said that operators who are not willing to pay a one-time charge for spectrum beyond 4.4 MHz can surrender it.

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Read more about: telecom, spectrum, bharti, idea
Story first published: Tuesday, October 9, 2012, 11:58 [IST]
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