Bharti Airtel (up 3.27%), Reliance Communication (up 1.42%), Spice Communication (up 1.41%), Idea Cellular (up 1.14%), Tata Teleservices (Maharashtra) (up 0.97%), and MTNL (up 0.21%), rose.
Telecom Minister Andimuthu Raja said on Monday that India plans to start auctioning third-generation wireless spectrum as scheduled from 14 January 2010.
Spectrum will be given to four successful bidders excluding BSNL and MTNL. However, all the successful bidders will get third-generation (3G) spectrum simultaneously only in August 2010.
Following the empowered Group of Ministers (eGoM)'s decision, the department of telecom will soon issue a notice inviting applications for the sale of spectrum. The notice is a legally binding document on the auction and will specify all details regarding the sale of spectrum, including its exact availability in each circle and the specific bands for the winners.
3G spectrum will enable mobile subscribers to use advanced telephony services such as video-calling and high-speed Internet access.
Number portability, the facility that allows customers to retain their mobile numbers while changing operators, will be implemented from early 2010. This may affect operators who do not win 3G spectrum as they may see their high-end customers migrating to rivals.
The UPA government is keen to hold 3G auctions this financial year as it is targeting to raise Rs 30,000-35,000 crore from the process to help bridge the fiscal deficit. But, if the auction revenue does not come this financial year, the government's math will go wrong as it has officially budgeted Rs 25,000 crore from 3G and Wimax bids by March 31, 2010.