Kuwait’s Zain may invest in MidEast-report

July 15, 2010 By Leave a Comment

July 14 (Reuters) – Kuwaiti telecom firm Zain (ZAIN.KW) is open to investing in communications and the Internet in the Middle East, its chief executive said in remarks published on Wednesday.

The state news agency KUNA quoted Nabil bin Salama as saying the company’s profits for the first half will be “good.” He did not provide any figures.

Zain sold most of its African assets to India’s Bharti Airtel (BRTI.BO) in a $9 billion deal last month. It overhauled its management in line with its new strategy to concentrate on Middle East operations. [nLDE6591RK]

Bin Salama said Zain was interested in acquiring the telecoms company it operates in Lebanon, MTC Touch, if the government decides to sell it.

(Reporting by Diana Elias; Editing by Andrew Callus)

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Indian shares drag as Infosys disappoints

July 14, 2010 By Leave a Comment

MUMBAI, July 13 (Reuters) – Indian shares were trading 0.1 percent lower on Tuesday, led by technology stocks, as investors ignored a guidance upgrade by Infosys Technologies (INFY.BO) and concentrated on a rare drop in its June quarter earnings.

Weak Asian shares also added to the negative sentiment, led by Chinese stocks which fell 2 percent on reports Beijing will not ease tougher property measures any time soon. [MKTS/GLOB]

Shares in Infosys, which scaled new peaks in the last two sessions, were down 3.1 percent, after it said net profit in the June quarter fell to 14.9 billion rupees ($318 million) from 15.3 billion rupees a year ago. [ID:nSGE6680B5]

“People will now adjust their expectations for other IT majors like TCS and Wipro,” said Tejas Doshi, head of research at Sushil Finance.

“The share prices of IT companies had run up on a lot of expectations … probably more than what was warranted.”

By 11:14 a.m. (0544 GMT), the 30-share BSE Index .BSESN was trading down 0.12 percent at 17,915.33 points with 13 of its components declining.

The benchmark which had rallied 81 percent in 2009, is up 2.6 percent so far in 2010.

Investors will watch out corporate earnings for April-June for cues in the near term.

“We expect a 22 percent to 25 percent growth in earnings for Sensex companies for the June quarter,” said Deven Choksey, managing director and CEO of KR Choksey Shares.

“The direction for guidance is also likely to be positive.”

Foreign funds have invested $7.1 billion in Indian equities so far in 2010, after a record inflow of $17.5 billion in 2009.

Other software majors Tata Consultancy Services (TCS.BO) and Wipro (WIPR.BO) were down 2.4 percent and 1.7 percent respectively.

Leading mobile operators Bharti Airtel (BRTI.BO) and Reliance Communications dragged lower on continued concerns of margin erosion due to lower tariffs and growing competition.

The stocks were down 1.7 percent and 1 percent respectively.

Lenders continued to gain on expectations of better loan demand as the economy grows.

Late last week, Trade Minister Anand Sharma told Reuters India’s gross domestic product growth is expected to return to “9 percent plus” this year, led by strong corporate performance and rising savings levels. [ID:nSGE6680FV]

Top lender State Bank of India (SBI.BO) was up nearly 1 percent while private sector rivals ICICI Bank (ICBK.BO) and HDFC Bank (HDBK.BO) rose 0.5 percent each.

Mortgage lender Housing Development Finance Corp (HDFC.BO) climbed 1.7 percent.

In the broader market, gainers outnumbered losers in a ratio of 1.4:1 in a volume of 130 million shares.

The 50-share NSE index was down 0.1 percent at 5,377.20 points.

STOCKS ON THE MOVE

* CMC (CMC.BO), which offers customer services like IT solutions and system integration, was up 2.4 percent at 1,520.05 rupees as it reported late Monday its June-quarter consolidated net profit was 464.5 million rupees [ID:nSGE66B0H6].

* Unichem Laboratories (UNLB.BO) rose 2.3 percent to 480 rupees after the drugmaker said on Monday said it will consider a stock split at its board meeting scheduled on July 22. [ID:nWNBS0473]

MAIN TOP THREE BY VOLUME

* Suzlon Energy (SUZL.BO) on nearly 5 million shares

* Idea Cellular (IDEA.BO) on 1.7 million shares

* IFCI (IFCI.BO) on 1.5 million shares

FACTORS TO WATCH * For technical analysis double click on www.reutersindia.net * Indian rupee report [INR/] * Indian bond report [IN/] * Euro steady after retreat, Greek auction eyed [FRX/] * Oil slides with equities;U.S. inventories seen mixed [O/R] * China stocks slide on property, weigh on Asia [MKTS/GLOB] * Wall St ekes out gain as caution rules before results [.N] * For closing rates of Indian ADRs INADR (Reporting by Ami Shah; editing by Malini Menon)

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Indian shares rise as telcos soar on stocks upgrade

July 10, 2010 By Leave a Comment

MUMBAI, July 9 (Reuters) – Indian shares rose 1.1 percent on Friday, with telecom stocks cheering an upgrade by Credit Suisse, and Infosys Technologies (INFY.BO) testing new high on better earnings expectations ahead of its quarterly results next week.

Top mobile operator Bharti Airtel (BRTI.BO) soared as much as 10.4 percent, while rivals Reliance Communications (RLCM.BO) and Idea Cellular (IDEA.BO) climbed as much as 3.9 percent and 14.7 percent respectively.

Credit Suisse upgraded Bharti to “outperform” from “neutral”, Reliance Communications to “neutral” from “underperform”, and Idea Cellular (IDEA.BO) to “outperform” from “underperform”.

“We believe that concerns on competition, regulation, 3G auction fee and RIL’s entry have been overstated,” Credit Suisse said in a note on Thursday.

By 11:59 a.m. (0629 GMT), the 30-share BSE Index .BSESN was trading up 1.05 percent at 17,836.50 points, with 25 of its components in the green.

“There are expectations built that IT and telecom stocks may surprise market on the positive side at June-quarter results,” said Deven Choksey, managing director and CEO of KR Choksey Shares.

“As far as telecom stocks are concerned, the valuations are cheap. All negatives are priced in, and prices cannot dip from here.”

The benchmark is up 2.2 percent so far this week. It has gained 0.8 percent this month on the back of around 107 million inflows from foreign funds.

IT bellwether Infosys, which unveils its quarterly earnings on June 13, rose as much as 1.9 percent to a record high of 2,879.90 rupees. Its earnings are often dubbed as a trendsetter for the sectoral peers.

“We expect robust results from Tier 1 IT vendors to demonstrate the underlying demand strength,” Macquarie said in a note. It expects Infosys to raise fiscal year 2011 U.S. dollar revenue growth guidance to 17-19 percent from 16-18 percent.

Its peers Tata Consultancy Services (TCS.BO) and Wipro (WIPR.BO) rose 0.1 percent and 0.9 percent respectively.

Lenders continued to rise on expectations that credit demand would pick up on the back of robust economic growth.

The country’s top lender State Bank of India (SBI.BO) was up 0.8 percent while leading private-sector rivals ICICI Bank (ICBK.BO) and HDFC Bank (HDBK.BO) gained 0.8 percent and 1.6 percent respectively.

Bajaj Auto (BAJA.BO) rose 0.5 percent after the auto player signed an agreement with Renault-Nissan alliance (RENA.PA) (7201.T) to manufacture an ultra low-cost car to be sold in India and other emerging markets, which would be a rival to Tata Motors’ (TAMO.BO) Nano. [ID:nSGE6670H5]

In the broader market, gainers were nearly double the losers in a volume of 191 million shares.

The 50-share NSE index was up 1 percent at 5,351.95 points.

STOCKS ON THE MOVE

* Pratibha Industries (PRTI.BO) was up 1.1 percent at 415 rupees as the construction firm said it has won a project from National Highways Authority of India for two-laning of a section of NH-86. [ID:nWNBS0455]

* KPIT Cummins Infosystems (KPIT.BO) rose after the software firm said on Thursday it is considering buying a German automotive product company with revenue earnings below $5 million at its board meeting scheduled on July 13. [ID:nWNBS0452]

MAIN TOP THREE BY VOLUME

* Idea Cellular on 8.5 million shares

* Bharti Airtel on 5.7 million shares

* Shree Ashtavinayak (SACV.BO) on 2.3 million shares

FACTORS TO WATCH * For technical analysis double click on www.reutersindia.net * Indian rupee report [INR/] * Indian bond report [IN/] * Euro holds near 2-mth highs, high-yielders firm [FRX/] * Oil set for 5 pct weekly gain on U.S. demand [O/R] * Asian stocks lifted by US data; euro holds gains[MKTS/GLOB] * Wall St up for 3rd day on data, retail sales [.N] * For closing rates of Indian ADRs INADR (Reporting by Ami Shah; editing by Malini Menon)

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UPDATE 1-India’s Bharti surges over 10 pct after stock upgrade

July 10, 2010 By Leave a Comment

MUMBAI, July 9 (Reuters) – Bharti Airtel (BRTI.BO), India’s leading mobile operator, rose more than 10 percent on Friday to its highest level in nearly three months after Credit Suisse upgraded the stock citing stable call tariffs.

India, the world’s fastest-growing mobile market, is signing up new mobile subscribers at a monthly average of 16 million, but call prices have fallen to as low as 0.4 U.S. cents a minute amid stiff competition in the crowded 15-operator market. Credit Suisse, which upgraded Bharti to “outperform” from “neutral”, said tariffs had been stable in the last eight months and high cost for 3G mobile spectrum had crimped mobile operators’ ability to go for further price war.

At 11:16 a.m. (0546 GMT), the stock was trading 8.7 percent higher at 305.25 rupees, after rising as much as 10.4 percent to their highest since April 15. The stock is still down 5.7 percent so far this year.

Rival Reliance Communications (RLCM.BO) was up nearly 3 percent at 193.30 rupees, while the Mumbai market .BSESN was trading 1 percent higher. Reliance Communications and the main index are up 13 percent and 2.2 percent, respectively, in 2010.

India’s three biggest carriers — Vodafone’s (VOD.L) India unit, Bharti and Reliance — each won key licences in May to offer 3G services in Delhi and Mumbai — the biggest markets in the country.

The auction yielded the Indian government $14.6 billion in revenues, nearly twice what it had expected. [ID:nSGE64J07X]

“Revenue market shares are steady, high auction prices could force most players to avoid competitive actions and regulatory risks could be exaggerated,” Credit Suisse analysts wrote in the research report.

“Reasonable valuations could protect downside and lead to a favourable risk-reward profile. We are, therefore, turning positive on the sector.”

Bharti, which completed its $9 billion acquisition of African operations from Kuwait’s Zain (ZAIN.KW) last month, trades at 13 times its one-year forward earnings compared to 14 times in Reliance Communications, according to Starmine data. ($1=46.8 rupees) (Editing by Ranjit Gangadharan)

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Indian shares rise 1 pct; telecoms, techs lead

July 10, 2010 By Leave a Comment

July 9 (Reuters) – Indian shares extended gains to 1 percent on Friday morning, with telecom stocks and IT firms leading the gains.

Infosys Technologies (INFY.BO) rose as much as 1.9 percent to a record high of 2,879 rupees ahead of its quarterly earnings on Tuesday.

Leading telecom firms Bharti Airtel (BRTI.BO) and Reliance Communications (RLCM.BO) rallied as much as 8.2 percent and 2.8 percent respectively, after Credit Suisse upgraded Bharti to “outperform” from “neutral” and Reliance Communications to “neutral” from “underperform”.

At 10:01 a.m. (0431 GMT), the 30-share BSE index .BSESN was up 1.04 percent at 17,834.45 points, with 28 components advancing.

The 50-share NSE index was up nearly 1 percent at 5,348.60. (Reporting by Ami Shah)

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UPDATE 1-RESEARCH ALERT-Credit Suisse upgrades Kuwait’s Zain

July 6, 2010 By Leave a Comment

* Upgrades Zain post African assets disposal

* Says potential upside from further asset sales possible

July 5 (Reuters) – Credit Suisse upgraded Kuwaiti telecoms firm Zain (ZAIN.KW) by two notches to “outperform,” and said the market underestimates the strength of cash generation in the company’s Middle Eastern assets and potential for substantially lower group overheads post the Africa disposal.

The brokerage, which previously had an “underperform,” rating on the stock, also raised its share-price target to 1.4 dinars from 0.9 dinars.

Last month, Bharti Airtel Ltd (BRTI.BO) completed its $9 billion acquisition of the African operations from Zain in a deal that makes the Indian firm the world’s fifth biggest cellphone company by subscribers. [nSGE65802V]

“Free of financial drag and organisational overstretch in Africa, we see Zain as stronger, more clearly focused and with a newly shareholder-friendly emphasis on cash distribution,” the brokerage said. Zain’s African exit signals the possibility of wider retrenchment given shareholder focus on cash returns, Credit Suisse said, adding that it expects potential upside from further asset sales.

The brokerage said Zain could pay a 0.35 dinars-per-share 2010 dividend and still generate at least 0.1 dinars-per-share of underlying earnings.

“We expect sporadic news reports on possible M&A interest in Zain and potential dividend payments to continue,” it said.

Shares of the company were up 2 percent at 1.1 dinars at 0855 GMT.

(Reporting by Mary Meyase in Bangalore; Editing by Maju Samuel)

((mary.meyase@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: mary.meyase.reuters.com@reuters.net)) Keywords: ZAIN/RESEARCH CRESITSUISSE

(C) Reuters 2010. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nSGE6640BD

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UPDATE 1-Zain in stake talks with Etisalat-paper

June 29, 2010 By Leave a Comment

KUWAIT/ABU DHABI, June 27 (Reuters) – Kuwaiti telecoms firm Zain (ZAIN.KW) is in talks with Abu Dhabi’s Emirates Telecommunications Corp (ETEL.AD) (Etisalat) about selling a majority stake in the group, a Kuwaiti newspaper report said on Sunday.

Both firms held meetings last week to discuss the potential deal, daily al-Seyassah said.

“Etisalat does not comment on market speculation and rumours,” Ahmed Bin Ali, group senior vice president for corporate communications at Etisalat told Reuters on Sunday.

The Abu Dhabi operator has said it is looking at options in India, including taking a 26-percent stake in the country’s second-biggest mobile operator Reliance Communications (RLCM.BO). [ID:nSGE657020]

On Sunday Reliance agreed to sell its telecoms tower business to GTL Infrastructure (GTLI.BO) but said it was still seeking to pursue the sale of a 26 percent stake in the firm. [ID:nSGE65Q00V]

A Zain spokesman could not be reached for comment on the report.

Earlier this month Zain’s chief executive Nabeel bin Salama said the firm was not in talks to sell further assets, after it closed the sale of its African assets, excluding Sudan and Morocco, to India’s Bharti Airtel (BRTI.BO) in a $9 billion deal. [ID:nSGE6570D2]

Zain shares were trading down 1.8 percent at 1023 GMT on the Kuwait bourse, on Sunday while Etisalat shares were trading flat on the Abu Dhabi bourse. (Writing by Eman Goma; Additional reporting by Stanley Carvalho; Editing by Dinesh Nair, Greg Mahlich)

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Zain in talks with Etisalat to sell majority stake-paper

June 28, 2010 By Leave a Comment

June 27 (Reuters) – Kuwait’s telecoms firm Zain (ZAIN.KW) is in talks with Abu Dhabi’s Etisalat (ETEL.AD) to sell a majority stake in the group, a Kuwaiti newspaper reported on Sunday.

Financials | Telecommuncations Services

Both firms held meetings last week to discuss the potential deal, daily al-Seyassah said in an unsourced report and without providing details about the size of the stake or the price.

A Zain spokesman could not be reached for comment on the report. Etisalat spokesman was not available to comment immediately.

Earlier this month, Zain’s Chief Executive Nabeel bin Salama said the firm was not in talks to sell further assets, after it closed the sale of its African assets, excluding Sudan and Morocco, to India’s Bharti Airtel (BRTI.BO) in a $9 billion deal. [ID:nSGE6570D2] (Writing by Eman Goma; Editing by Dinesh Nair)

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India Bharti starts hosted contact centre services

June 18, 2010 By Leave a Comment

June 17 (Reuters) – Bharti Airtel (BRTI.BO) has partnered Cisco (CSCO.O) and Indian firm Servion to launch hosted contact centre services in India, the leading Indian mobile phone operator said on Thursday.

Technology | Telecommuncations Services

Hosted contact centre solutions offer access to technology without having to buy software licenses, hardware, helping cost savings for firms, Bharti said in a statement. It said the Indian market for these services was valued at $50 million. (Reporting by Devidutta Tripathy)

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Bharti adds 3 mln mobile users in May – industry

June 16, 2010 By Leave a Comment

June 15 (Reuters) – Bharti Airtel (BRTI.BO), India’s top mobile operator, added 3 million mobile subscribers in May, taking its total to 133.6 million, data from an industry body showed.

Telecommuncations Services

Vodafone Essar, the third-biggest mobile operator in India and controlled by Vodafone (VOD.L), gained 2.59 million mobile subscribers in May to have a total of 106.3 million, the Cellular Operators Association of India said. (Reporting by Devidutta Tripathy; Editing by Ranjit Gangadharan)

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UPDATE 1-Singtel’s CEO for international ops to retire

June 11, 2010 By Leave a Comment

SINGAPORE, June 10 (Reuters) – Singapore Telecommunications’s (STEL.SI) CEO for international operations Lim Chuan Poh, one of the firm’s top executives, will retire at the end of this year, the company said on Thursday.

Lim, 55, joined SingTel in 1998 and was appointed CEO International in 2006. He is in charge of SingTel’s overseas investments, which includes a 32 percent stake in India’s largest mobile phone operator Bharti (BRTI.BO) and 35 percent in Indonesia’s Telkomsel.

SingTel did not give a reason for Lim’s early retirement.

Other firms that SingTel holds large stakes in include Philippines’ Globe Telecom (GLO.PS), Thailand’s Advanced Info Services, Pacific Bangladesh Telecom and Warid Telecom in Pakistan.

SingTel said it has initiated a search for Lim’s replacement, both within the firm and externally.

Lim is one of three CEOs reporting to SingTel Group CEO Chua Sock Koong. The other CEOs are Allen Lew, who is in charge of Singapore, and Paul O’Sullivan, who takes care of SingTel Optus, Australia’s second largest telecom firm.

(Reporting by Kevin Lim)

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Indian shares rise 0.6 pct; Reliance, Bharti gain

June 11, 2010 By Leave a Comment

MUMBAI, June 10 (Reuters) – Indian shares climbed 0.6
percent on Thursday, in tandem with a recovery in Asian markets
after robust Chinese exports underlined strong growth, but
investors were hesitant to build large positions.

Until the debt problems in the euro zone are resolved and
foreign funds resume investment, the market will find it hard
to push ahead, traders said.

Energy conglomerate Reliance Industries (RELI.BO) topped
the gainers after the Economic Times reported it was looking to
enter the telecoms market when the opportunity arises, with a
focus on selling phone and Internet services to companies.
[ID:nSGE65903K]

Bharti Airtel (BRTI.BO) climbed 1.7 percent after a top
official told Reuters the leading mobile operator would offer
affordable rates in Africa to boost usage but has no plan to
launch a price war. [ID:nSGE6580JD]

By 10:30 a.m. (0500 GMT), the 30-share BSE index .BSESN
was trading up 0.63 percent at 16,762.69, with 27 of its
components advancing.

“The turbulence in Europe needs to settle before any
meaningful buying happens to drive the market higher,” said R.
Ganesh, director of Systematix Shares.

Foreign funds are net buyers of about $84 million of stocks
so far this month after dumping nearly $2 billion in May. The
benchmark stock index is down more than 4 percent in the year
to date.

Traders Federal Reserve Chairman Ben Bernanke’s assurance
on Wednesday that the U.S. economic recovery was on solid
footing helped sentiment.

Reliance Industries, which has the highest weight on the
Sensex, climbed 0.5 percent to 1,011.90 rupees.

Financials gained on positive outlook for loan demand in
the world’s second-fastest growing major economy.

No. 1 lender State Bank of India (SBI.BO) rose 1.9 percent
while HDFC Bank (HDBK.BO) climbed 0.8 percent. Mortgage lender
Housing Development Finance Corp (HDFC.BO) firmed 1.2 percent.

In the broader market, nearly three shares advanced for
every share that declined on volume of 74 million shares.

The 50-share NSE index was up 0.6 percent at
5,032.25.

The MSCI’s measure of Asian markets other than Japan
.MSCIAPJ and Japan’s Nikkei .N225 were each up 0.9 percent.

STOCKS ON THE MOVE

* Non-ferrous metals producer Sterlite Industries (STRL.BO)
was down 0.8 percent at 624.55 rupees, as London copper dipped
0.7 percent. [ID:nSGE65906Z]

* Oil explorer Cairn India (CAIL.BO), an unit of Cairn
Energy (CNE.L), climbed 1.1 percent to 293.70 rupees as crude
oil prices climbed towards $75 a barrel.

MAIN TOP 3 BY VOLUME

* Unitech (UNTE.BO) on 3.2 million shares

* IFCI (IFCI.BO) on 2.2 million shares

* KPIT Cummins (KPIT.BO) on 1.9 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Aussie jumps after strong data, giving euro a lift
[FRX/]
* US crude rebounds towards $75 on China exports
[O/R]
* Asia stocks rise, euro steady on China data
[MKTS/GLOB]
* Wall St slides as BP plunge hurts sentiment
[.N]
* For closing rates of Indian ADRs
INADR

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UPDATE 1-Zain, Bharti to close African deal on Tuesday-sources

June 9, 2010 By Leave a Comment

June 8 (Reuters) – Kuwait’s Zain (ZAIN.KW) and India’s Bharti Airtel (BRTI.BO) are expected to close a $9 billion deal for most of the Kuwaiti firm’s African assets on Tuesday, sources said.

Zain will receive $7.9 billion from Bharti on Tuesday before both firms make an announcement about the final closing, sources close to the deal told Reuters.

Bharti has called for a press conference in New Delhi on Tuesday at 0900 GMT, but did not provide more details. Sunil Mittal, the firm’s chairman, will attend the press conference.

In March, Zain struck a $9 billion deal selling its operations in 15 African countries, excluding Sudan and Morocco, to Bharti.

Kuwaiti daily al-Rai said in a report earlier on Tuesday, citing informed sources, that $400 million will be deposited into the Kuwaiti firm’s accounts after completing some procedures related to the transfer of Zain’s license in Gabon to Bharti.

In April, Zain said that the Gabon government has approved the sale of Zain Gabon to Bharti. [ID:nSGE63T024]

The remaining $700 million will be received by Zain a year after the closing, according to the agreement.

Zain’s shares were halted since May 30 pending the distribution of its 2009 cash dividend after its shareholders approved a cash dividend of 170 fils per share, which excludes distribution from the sale of the African units to Bharti. [ID:nLDE64Q0TG]

There are 1,000 fils to the dinar. (Reporting by Eman Goma; Editing by Thomas Atkins)

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Zain, Bharti to close African deal on Tuesday-sources

June 9, 2010 By Leave a Comment

June 8 (Reuters) – Kuwait’s Zain (ZAIN.KW) and India’s Bharti Airtel (BRTI.BO) are expected to close a $9 billion deal for most of the Kuwaiti firm’s African assets on Tuesday, sources said.

Telecommuncations Services

Zain will receive $7.9 billion from Bharti on Tuesday before both firms make an announcement about the final closing, sources close to the deal told Reuters.

In March, Zain struck a $9 billion deal selling its operations in 15 African countries, excluding Sudan and Morocco, to Bharti.

Kuwaiti daily al-Rai said in a report earlier on Tuesday, citing informed sources, that $400 million will be deposited into the Kuwaiti firm’s accounts after completing some procedures related to the transfer of Zain’s liscence in Gabon to Bharti.

The remaining $700 million will be received by Zain a year after the closing, according to the agreement. (Reporting by Eman Goma; Editing by Thomas Atkins)

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India ups 3G base price of radio spectrum, sees auction within three months

August 28, 2009 By Leave a Comment

New Delhi, Aug 28 (ANI): India raised reserve prices for auctions of third-generation (3G) and fourth-generation (4G) radio spectrum by nearly three-quarters on Thursday.

Union Telecommunication Minister A. Raja said the long-pending sales would be held within three months.

He said the government expected at least 250 billion rupees from the sale, which analysts have said would help plug India’s fiscal deficit.

In its July budget, the government forecast the deficit would widen to 6.8 percent of gross domestic product in the year to March 2010, and pencilled in 350 billion rupees from the auction.

The auction, which would introduce high-speed Internet and video downloads on mobile phones, was originally planned for January but was delayed after the finance ministry wanted the reserve price to be doubled.

On Thursday, the base price for 3G spectrum was revised by a ministerial panel to 35 billion rupees from an original 20.20 billion rupees.

Firms bidding for fourth-generation Broadband Wireless Access (BWA) spectrum will have to pay a minimum of 17.5 billion rupees now, compared with 10.10 billion announced last year.

On this score, Raja said the auction would get over in three months.

“It (auction) will finish within three months,” he added.

India plans to auction the spectrum in 20 of the country’s 22 telecom zones for the time being, as it does not have available radio airwaves in the other two.

Bharti Airtel (BRTI.BO), the country’s leading mobile operator, said in a statement it looked forward to participating in the auction. (ANI)

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