Telecom players to trade down on Thursday

Department of Telecom (DoT) has issued demand-cum-show notices to six telecommunication companies for Rs 29474 crore. The list of companies include Bharti Airtel, Vodafone and Idea Cellular.

DoT has issued demand-cum-show cause notices to six private telecom companies based on C&AG report for four financial years i.e. FY07 to FY10, because of licence fee (LF). The LF is calculated as a percentage of Adjusted Gross Revenue. The show cause notice amount includes Rs 6490 crore of LF, which is Rs 13751 crore in interest, Rs 3178 crore of penalty and Rs 6055 crore for interest on penalty from the six operators.

DoT has demanded show cause notice amounting to Rs 8162 crore from Bharti Airtel, Rs 7701 crore from Reliance Group, Rs 5718 crore from Tata Teleservices, Rs 4695 crore from Vodafone, Rs 2708 crore from Idea Cellular and Rs 490 crore from Aircel.

The share price of telecommunication players such as Bharti Airtel, Idea Cellular, Reliance Communication, Tata Teleservices would be watched out on an intraday basis.

Meanwhile, share price of Bharti Airtel, Reliance Communications, Tata Teleservices has declined by 1.5 per cent, 0.55 per cent and 1.74 per cent respectively. However, Idea Cellular’s share price has risen by 0.19 per cent on an intraday basis.