Telecom shares hog limelight as allotment of 3G spectrum begins

Six telecom shares rose 0.91% to 4.49% at 15:07 IST on BSE, as the government today, 1 September 2010, starts the process of allotting third generation bandwidth.



Meanwhile, the BSE Sensex was up 223.49 points, or 1.24% at 18,194.61.

Ideal Cellular (up 0.91% to Rs 67.50), Shyam Telecom (up 1.89% to Rs 67.50), Tata Teleservice (Maharashtra) (up 2.01% to Rs 22.85), MTNL (up 2.45% to Rs 62.60), Bharti Airtel (up 3.32% to Rs 338) and Reliance Communications (up 4.49% to Rs 163) edged higher.

Bharti Airtel and Reliance Communications (RCOM), had each won 3G airwaves in 13 of the 22 telecom zones on offer. Other major operators -- Aircel, Vodafone Essar, Idea Cellular and Tata Teleservices had won 3G airwaves in 13, 9, 11 and 9 circles, respectively. Most companies that have won the spectrum have been gathering content and equipment for the launch of services before the end of December 2010, reports suggest. However, security issues with Chinese equipment vendors have delayed network deployment for a few.

As per reports, telecom operators are in discussions to share passive infrastructure like towers as well as active infrastructure like radio transmission equipment to reduce costs of a 3G rollout. The discussions also include intra-circle roaming facilities so that operators can offer 3G services across India, rather than just in the cities where they have spectrum, reports suggest.