Around 75 per cent, or 372 stocks, that are part of the BSE500 are trading at least 10 per cent below their all-time high levels, despite the index hitting a record high 20,515 points on the BSE in intra-day trade on Wednesday, surpassing its previous high of 20,390 touched in March 12. The index, which accounts for 93 per cent of BSE listed companies' market capitalisation, has gained 8 per cent from its recent low of 18,983, touched on April 19. In comparison, the benchmark S&P BSE Sensex gained 6 per cent over the same period, but is still nearly 4.5 per cent away from its all-time high of 52,517 that it hit on February 16.
Operators Bharat Sanchar Nigam Ltd, Bharti Airtel, Vodafone-Essar, Aircel, Mahanagar Telephone Nigam Ltd and Idea Cellular might have to fork out over Rs 11,200 crore for having spectrum beyond 6.2 MHz, if the government accepts the Telecom Regulatory Authority of India (Trai) recommendations.
Bharti Airtel and Vodafone Idea have communicated to the telecom department that they will not pay AGR dues of Rs 88,624 crore, the deadline for which ended on Thursday, and will wait for the outcome of modification petition listed for hearing before the Supreme Court next week, according to official sources. Reliance Jio on Thursday paid Rs 195 crore to the telecom department to clear all adjusted gross revenue dues accounted till January 31, 2020, according to an official source.
The companies have offered to pay upfront the principal amount due for licence fees and spectrum usage charges (SUCs) on the basis of adjusted gross revenue (AGR). This amount will not include the interest, the penalty, and the interest on the penalty.
The books of these companies had come under a cloud after it was alleged that many of them had not been paying the goverment's share of revenue by showing the revenue earned under other categories. Under a suggestion of the Telecom Regulatory Authority of India, a special audit of all the integrated telecom companies will be undertaken once in 3-5 years.
Bharti Airtel chairman Sunil Mittal on Wednesday said the regulatory regime needs to be simple to avoid fresh litigations in the telecom sector, asserting that collaboration among competing players, lower duties and reduction in spectrum pricing will help unleash the full potential of the industry. The telecom czar noted that the "temperature" of the industry needs to be lowered when it comes to litigations and appealed to the government to look into the matter. The timely reforms that were announced brought in cheer and heightened comfort for all the active players in the sector, Mittal said and urged the industry counterparts to focus on building the next wave of connectivity in the run-up to 5G and beyond.
The Department of Telecom may bar operators holding 3G airwaves from sharing the high-speed spectrum.
The 3G spectrum auction evoked an excellent response from mobile operators on day one on Friday, with the reserve price of Rs 3,500 crore (Rs 35 billion) for pan-India operations escalating nearly 12 per cent to Rs 3,913.81 crore (Rs 39.138 billion).
Ajit Mishra, vice president, research, Religare Broking, answers your stockmarket queries.
The government has ruled out banning Blackberry services in India. This was stated by the telecom secretary in New Delhi on Friday.Security agencies had said that they should have access to data that are being encrypted by services like BlackBerry on mobile phones and then decrypted when the phone reaches its destination. The government had cited security concerns as it could not monitor the content on RIM's servers, which were located in Canada and other foreign locations.
Solicitor General of India Goolam Vahanvati has said no further allotment of spectrum beyond 6.2 MHz should be made to telecom operators till the report of the committee on its pricing and allocation is received.If the opinion is acted upon, it would affect companies like Bharti Airtel, Vodafone, Reliance Communications, Idea Cellular and Aircel, which have applied for extra spectrum in other circles.
After 3G auctions, analysts worried over the likely rise in debt and pressure on margins
According to sources, Bharti, Idea and Vodafone Essar have won in some of the circles in the auction that lasted 34 days.
The bid price for 3G spectrum continues to rise as it touched Rs 10,749 crore (Rs 107.49 billion) for pan-India operations on the 21st day of auction, assuring the government of Rs 43,372 crore (Rs 433.72 billion) in terms of revenue.
The move will help telcos, including Reliance Jio, Vodafone, and Idea Cellular
Currently, MNP is only available within a state/circle.
The Department of Telecommunications' Wireless Planning and Coordination arm has moved a note to issue start-up spectrum of 4.4 MHz to four leading service providers offering GSM technology, whose applications have been pending from December 2006.
The operators are willing to accept auction of second generation spectrum beyond what has been contracted. According to them, they are allowed to have spectrum up to 10 Mhz.
Members of COAI, including Bharti Airtel, Vodafone-Essar, Idea Cellular and others met in New Delhi and decided to go ahead with filing of the affidavit in TDSAT against the Telecom Engineering Centre's report. COAI has also questioned the government's move to allocate spectrum to two telecom PSUs -- BSNL and MTNL -- saying they have been given frequency out of turn as many other players have been waiting to get spectrum for months and even years now.
Successful bidders will have to pay 25 per cent of the amount upfront for sub 1 GHz, and 50 per cent upfront for higher frequency bands.
In effect, companies which put their money in telecom in India would have done much better to keep the cash in bank and earn interest.
GSM operators added 8.89 million subscribers in June, taking the total number of subscribers using the technology to 315.8 million.
Though the controversy over the security of BlackBerry services is yet to be resolved, the four operators that offer these services - Bharti Airtel, Vodafone Essar, BPL Mobile and Reliance Communications - have added over 50,000 customers in the four months since the problems began. Before this, the push-mail service, which was introduced in India in October 2004, had 400,000 subscribers according to industry estimates.
The government is believed to have issued instructions to mobile service providers like Bharti Airtel, Reliance and Vodafone not to route certain Blackberry services unless the required monitoring system was put in place.According to officials in the Department of Telecom (DoT), Blackberry licensor Research-in-Motion (RIM) has sought time till April 18 to address issues raised by it relating to lawful interception of content sent through Blackberry device.
Govt says there is enough spectrum, telcos differ
Although the industry is disappointed with the government decision not to lower spectrum prices at a time telcos are saddled with over Rs 4-trillion debt and an estimated Rs 1.43-trillion licence fee dues, the DCC has relaxed the payment structure to offer some relief to the financially stressed sector.
Given the escalating cost of doing business, the revenue opportunity is decreasing and consolidation is an inevitable part of the industry.
Corporate giant Tatas on Tuesday asked the government to seek surrender of excess spectrum lying with GSM operators, a line being aggressively pursued by Reliance Communications chief Anil Ambani. With this, the top two CDMA players have joined forces against GSM operators like Bharti and Vodafone to seek return of spectrum beyond the contractual amount of 6.2 Mhz.
The Department of Telecommunications has called a meeting of the heads of all leading telecom companies offering GSM technology services on November 21 to resolve contentious issues that have arisen following recent changes in telecom policy.
The market valuation of Reliance Industries, the country's most valued firm, is fast nearing the Rs 10 lakh crore mark, surpassing British energy major BP Plc.
The department of telecom (DoT) on Friday announced a set of rules for granting telecom licences and allocating spectrum that is likely to impact GSM-technology service providers like Bharti Airtel and Vodafone Essar, among others.
From spending a little less than three hours on making voice calls, Indians are spending well over 5 hours. So, while people make more calls, they are spending less than ever, reports Romita Majumdar.
A total of 41 companies had applied for the permit
Telecom watchdog sought the regulator's intervention on the price hike by Bharti Airtel, Vodafone Essar and Idea and alleged that the three telcos have formed a cartel and increased local call charges by 20 per cent.
New telecom operators who have been given licences to operate pan-India GSM mobile services are all set to fight a bitter battle with the established GSM players like Bharti Airtel, Vodafone and Idea Cellular.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
During the two-day visit, the delegation headed by CII President Sunil Bharti Mittal is scheduled to meet key people such as UK Secretary of State for Health and Environment and interact with industry captains.
Revenue decline has left the operators with little money to service their mostly 3G and partly 4G infrastructure leading to poor data and voice quality.
GSM operators (excluding Reliance Telecom) in the country added 6.3 million subscribers in August, taking the total number of users to 225.6 million. In July, the total GSM subscriber base in the country was 219.30 million.
USAID looks forward to working with each to make financial inclusion a long-lasting and sustainable reality in India.
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