Bharti Airtel, Idea Cellular tumble in firm market
India's largest listed telecom operator by sales Bharti Airtel fell 4.97% to Rs 348.80. India's third largest listed telecom operator by sales Idea Cellular tumbled 6.35% to Rs 88.60.
However, Reliance Communications (up 0.62%), and Tata Teleservices (Maharashtra) (up 3.36%), rose.
The BSE Sensex was up 458.24 points or 2.90% to 16,250.65.
Telecom secretary R. Chandrashekhar was quoted by media as saying that the Department of Telecommunications (DoT) will issue notices to five mobile phone operators including Bharti Airtel, Reliance Communications and Idea Cellular after the country's top auditor the Comptroller and Auditor General of India (CAG) found that the carriers misreported revenue and paid lower license fees to the government.
All the operators have previously denied any underreporting of revenue. The notices seek to have telecom service providers pay the license fees on actual revenue as calculated by the auditor, Chandrashekhar said.
Telecom operators currently pay between 6% and 10% annually as license fees for basic mobile phone services, depending on the service areas they operate in, while others such as national and international long-distance calls command lower fees.
The CAG has reportedly audited the accounts of Bharti Airtel, Reliance Communications, Idea Cellular, Tata Teleservices and Vodafone Essar for the financial years starting April 2006 through March 2009.
at 4:23:00 PM