Reliance Comm Rises On TRAI Proposals

Shares in Reliance Communications rose on Thursday on hopes that recommendations from the telecom regulator on the allocation and use of spectrum would speed up its growth.

The Telecoms Regulatory Authority of India (TRAI) on Wednesday recommended allowing existing licensees to provide wireless services using a mix of mobile phone transmission platforms on payment of an upfront fee.

Reliance Communications, India''s second-ranked mobile operator, has most of its subscribers on the CDMA platform.

It has applied for licenses on the dominant GSM (Global System for Mobile Communication) platform in 15 of India''s 23 telecom zones. It already provides GSM services in the rest of the zones.

The recommendation is a clear positive for Reliance Communications, Macquarie Research analysts said in a report. This eliminates significant uncertainty about Reliance Communications'' ability to launch GSM operations.

Shares in Reliance Communications rose 2.8 percent up to 534.40 rupees in a Mumbai market that gained 0.9 percent. But Bharti Airtel, which is India''s top mobile services firm, slipped 0.1 percent to 878.80 rupees.

Under TRAI''s proposals to the government, analysts said Reliance Communications would be able to provide GSM services through its existing licenses, which could mean a faster roll-out of services than if it had to wait for approval of new licences.

Source : www.indian-commodity.com