Connect with us

Business

Telecom Shares Gain After Spectrum Auction 2021 Concludes

Shares of telecom operators – Bharti Airtel, Reliance Industries-owned Jio gained today

Share price of telecom operators Bharti Airtel and Reliance Industries surged on Wednesday, March 3, a day after the companies purchased radiowaves in the spectrum auction 2021 which concluded yesterday. On Wednesday, Reliance Industries surged over two per cent on the BSE. It opened at Rs 2121.70, touching an intra day high of Rs 2157 and an intra day low of Rs 2107.20, so far. Shares of Bharti Airtel opened on the BSE at Rs 548.25, touching an intra day high of Rs 550.5 and an intra day low of Rs 540.25, so far. (Also Read: Spectrum Auction Concludes With ₹ 77,815 Crore Bids, Reliance Jio Emerges Top Buyer )

Mukesh Ambani’s Reliance Jio emerged as the top buyer in the spectrum auction offering about ₹ 57,123 crore, acquiring the right to use spectrum in all 22 circles or zones across the country. Reliance Jio Infocomm Limited said that it won 488.35 MHz of spectrum, taking up its spectrum footprint by 55 per cent to 1,717 MHz. At 2:32 pm, shares of Reliance Industries traded 2.79 percent higher at Rs 2,165.05. (Also ReadSpectrum Auction: Bharti Airtel Buys Radiowaves Worth ₹ 18,699 Crore )

Bharti Airtel Bharti Airtel picked up radiowaves worth Rs 18,699 crore in the auction, entailing 355.45 MHz spectrum across Sub GHz, mid band, and 2300 MHz bands, in 19 out of 22 circles. The spectrum will enable the company to deliver 5G services in the future. At 2:31 pm, shares of Bharti Airtel traded 0.82 per cent higher at Rs 545.70 on the BSE. (Also ReadBharti Airtel Gains After Acquiring 355.45 MHz Spectrum For ₹ 18,699 Crore )

On the other hand, shares of Vodafone Idea dropped by nearly 1.5 per cent on the BSE today. Vodafone Idea Limited bought spectrum worth ₹ 1,993.40 crore and said that the spectrum it acquired in five circles will help boost 4G coverage and capacity. Vodafone Idea is facing a huge liability of unpaid statutory dues in the past. At 2:35 pm, shares of Vodafone Idea traded 1.41 per cent lower at Rs 11.22 on the BSE. 

According to Emkay Global Financial Services, Bharti Airtel focused on strengthening its sub-Ghz spectrum holding by filling the gap in five circles and acquiring additional spectrum in eight circles. Only two circles – Gujarat and Kerala – have below 5Mhz in sub-Ghz due to limited supply. 

Reliance Jio has the largest spectrum holding in sub-Ghz band and capacity band (2300Mhz). Jio had 81Mhz of 800Mhz spectrum up for renewal across 16 circles, while it acquired 129Mhz. Its average spectrum holding per circle now stands at 61Mhz, with only two circles remaining below-average.

Source link