Bharti shares drop 6pc on spectrum proposal
Thursday, 13 May 2010
NEW DELHI, May 12 (Reuters): Shares in Bharti Airtel Ltd, India's top mobile operator, dropped more than 6 per cent Wednesday, weighed down by concerns a new proposal on spectrum fee would hit the firm's earnings.
The telecoms regulator Tuesday recommended companies pay a one-time fee for holding 2G radio-spectrum beyond 6.2 mega hertz (MHz) based on 3G prices, a move that will hit established operators that are dominant on the GSM platform.
Analysts said the new proposal would further stretch the balance sheet of leading GSM mobile players, who are seeing a sharp surge in capital expenditure due to an ongoing auction for the 3G wireless spectrum.
At 10:45 am (0515 GMT), shares in Bharti were down 6.1 per cent at 267.50 rupees in the main Mumbai market that was little changed. Bharti had fallen 3.1 per cent Tuesday.
The telecoms regulator Tuesday recommended companies pay a one-time fee for holding 2G radio-spectrum beyond 6.2 mega hertz (MHz) based on 3G prices, a move that will hit established operators that are dominant on the GSM platform.
Analysts said the new proposal would further stretch the balance sheet of leading GSM mobile players, who are seeing a sharp surge in capital expenditure due to an ongoing auction for the 3G wireless spectrum.
At 10:45 am (0515 GMT), shares in Bharti were down 6.1 per cent at 267.50 rupees in the main Mumbai market that was little changed. Bharti had fallen 3.1 per cent Tuesday.