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Bharti Airtel, Idea gain on lower 2G auction prices
November 15, 2012 / 6:09 AM / in 5 years

Bharti Airtel, Idea gain on lower 2G auction prices

Reuters Market Eye - India’s wireless services providers rise after an auction of 2G airwaves attracts less demand than targeted by the government because prices are seen as too high.

A shopkeeper uses a mobile phone inside a Bharti Airtel store in Agartala, November 7, 2012. REUTERS/Jayanta Dey/Files

The low prices give a respite to the debt-ridden industry, with the government raising less than one fourth of the targeted 400 billion rupees via the auction, which is being undertaken after the Supreme Court ordered the cancellation of permits granted in a scandal-tainted process in 2008.

Barclays Capital says the lower pricing is a “positive outcome” for the industry, but warns there is still a lack of clarity on the timing of the government’s next step to find market prices for spectrum.

Bharti Airtel (BRTI.NS) gains 3.2 percent, while Idea Cellular (IDEA.NS) rises 3.5 percent as of 1:54 a.m.

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