Telecom Shares Edge Higher On Lower Spectrum Usage Charge

Telecom stocks today received up to three.4 in line with cent after the inter-ministerial panel Telecom fee sponsored decreasing of spectrum utilization fee to 3 in line with cent of their annual sales from next public sale.

stocks of Reliance Communications jumped three.4 consistent with cent to Rs 50.05 and Bharti Airtel climbed 2.seventy three in step with cent to Rs 358.70 on BSE.

concept mobile rose with the aid of 1.28 consistent with cent to Rs 106.70.

In what could be proper news to cellular operators, the inter-ministerial panel Telecom commission has backed decreasing of spectrum utilization charge to three in line with cent of their annual sales.

The panel additionally decided that the payout for vendors in any case will now not be lower than what they’re currently paying at the present rate to save you loss of sales to the government.

“For future auction, the Telecom commission stood by way of its earlier recommendation to levy three consistent with cent SUC,” an reliable source had said.

The Telecom Regulatory Authority of India (Trai) has advocated SUC at a uniform price of 3 consistent with cent throughout the industry and step by step bringing it to 1 in step with cent.

The authorities in January 2014 determined to cap SUC at a flat five in line with cent for spectrum that turned into to be procured in destiny auctions.

At that point, telecom operators were requested to pay the weighted average of their current SUC (at the old price of 3-8 consistent with cent) based totally on the quantum of spectrum they hold and 5 per cent in the event that they collect new spectrum.