Bharti shares fall on competition fears

14 Dec 2007
00:00

Shares in India's leading mobile operator, Bharti Airtel Ltd , fell more than 6%, a day after a tribunal ruled in favor of new players for spectrum that would increase competition, a Reuters report said.

The Reuters report said India's wireless market is the world's fastest growing that has been signing up about 8 million subscribers a month, but the expansion has caused a shortage of spectrum or airwaves needed to connect mobile calls.

Earlier, India's telecoms tribunal asked the government to issue spectrum to new players 'right away,' and to defer the allotment of additional spectrum to existing players until a government committee recommends fresh rules, the Reuters report said.

Bharti, with nearly 53 million mobile subscribers at end-November and a more than 23% share of the market, will be the biggest loser, analysts said.

The tribunal's ruling will clear the way for No. 2 player Reliance Communications, which mainly operates on the CDMA platform but is expanding to the popular GSM services, the report said.

India had issued separate licences and spectrum for CDMA and GSM services, but decided in October to allow Reliance to use the same license for offering GSM in new telecom circles or zones, the report further said.

Related content

Follow Telecom Asia Sport!
Comments
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.