Shares in Bharti Airtel rose 2.8 percent and Idea Cellular jumped 1.2 percent after the government allowed telecom operators to share airwaves in the same band to reduce call drops. However, RCOM shares dropped following the decision.
"Fulfilling the government's commitment to improve spectral efficiency and quality of service, which is very essential to fulfill the dream of Digital India, the Union Cabinet chaired by the Prime Minister, Narendra Modi, on Thursday gave its approval to the guidelines on spectrum sharing, arising from the recommendations of the Telecom Regulatory Authority of India (TRAI)," a press release stated.
"Spectrum sharing will be restricted to sharing by only two licensees subject to the condition that there will be at least two independent networks provided in the same band," the statement said.
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