Telecom stocks side better On decrease Spectrum utilization fee

Telecom Shares Edge Higher On Lower Spectrum Usage Charge

Mumbai: Telecom stocks these days won up to a few.4 in line with cent after the inter-ministerial panel Telecom commission sponsored reducing of spectrum usage rate to three in line with cent of their annual revenue from next public sale.

shares of Reliance Communications jumped three.4 in line with cent to Rs 50.05 and Bharti Airtel climbed 2.73 in step with cent to Rs 358.70 on BSE.

idea mobile rose with the aid of 1.28 in line with cent to Rs 106.70.

In what might be desirable news to cellular operators, the inter-ministerial panel Telecom fee has backed decreasing of spectrum usage rate to a few in step with cent in their annual revenue.

The panel also determined that the payout for carriers anyways will not be decrease than what they may be presently paying at the prevailing fee to save you lack of sales to the government.

“For destiny public sale, the Telecom commission stood by means of its in advance recommendation to levy three according to cent SUC,” an legit supply had said.

The Telecom Regulatory Authority of India (Trai) has endorsed SUC at a uniform price of three in line with cent throughout the enterprise and step by step bringing it to one per cent.

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

At that point, telecom operators had been requested to pay the weighted average of their current SUC (at the antique charge of three-8 in line with cent) based at the quantum of spectrum they hold and 5 in line with cent if they collect new spectrum.