DoT’s Wireless Planning and Coordination (WPC) wing had earlier said that the 3G inter-operator arrangements between the licensee should not be treated as roaming arrangement. It should be treated as sharing of spectrum which is not permitted under the agreements signed with the DoT
New Delhi: The Department of Telecom (DoT) has sought views of the law ministry whether the mobile operators who bought third generation (3G) spectrum in government auction are circumventing their licensing conditions by leasing out the advance radio waves among themselves, reports PTI.
"Legal advisor (telecom) may also offer his views on the legal appropriation on the case (3G roaming agreement),” a senior Department of Telecom (DoT) official said in an internal note.
Major service providers including Bharti Airtel, Vodafone Essar and Idea Cellular have entered into 3G roaming alliances in their bid to offer high-end data services on a pan-India basis.
In a similar deal with Tata Teleservices, Aircel offers 3G services in six circles.
However, their moves did not go well with the DoT which feels that these inter-operator alliances violate terms and conditions of the third generation (3G) spectrum agreements which were singed in June last year following high-bid auctions.
The DoT took up the issue after the Telecom Regulatory Authority of India (TRAI) had prima-facie come to conclusion that such agreements are in violation of the terms and conditions of the telecom licences.
Earlier, DoT’s Wireless Planning and Coordination (WPC) wing, which keeps an eye on industry players, had also said that the 3G inter-operator arrangements between the licensee should not be treated as roaming arrangement. It should be treated as sharing of spectrum which is not permitted under the agreements signed with the DoT, the note added.
The WPC, a DoT wing, had also warned that the move by the service providers would result in revenue loss to the exchequer.
Defending the 3G roaming agreements between telecom operators, the GSM lobby Cellular Operators Association of India (COAI) had said they did not violate the Unified Access Services Licence (UASL) under which service providers can offer all services.
Nifty may move in the range of 5,130 and 5,190
Paring all its gains in the post-noon session after the key European indices slipped into the negative ahead of the 3 billion euro Italian bond auction, the market settled lower for the third day in a row. The Nifty opened in positive and made a higher high than the previous trading day but could not retain its strength and ended lower. The index may now see a movement in the range of 5,130 and 5,190 and if it continues to hit new intra day lows, the fall may extend up to 5,055. The fall happened on rising volume, today the National Stock Exchange (NSE) witnessed a volume of 61.02 crore shares.
The market opened higher tracking the markets in Asia which were trading higher on signs of easing of debt worries in Europe. Investors hope that the new leaders in Greece and Italy would take steps to save their nations from the financial crisis. The Nifty opened at 5,217, up 48 points and the Sensex added 156 points to its previous to resume trade at 17,349. Realty, technologies, IT and banking sectors supported the market in its upmove.
The benchmarks hit their intraday high in the initial session itself with the Nifty rising to 5.229 and the Sensex scaling 17,392. The market was sideways in subsequent trade ahead of the headline inflation data for October.
The indices pared all the day’s gains and slipped into the red in post-noon trade on the back of a clutch of negative news from the domestic corporate sector and the key European indices slipping into the negative. The benchmarks fell to their day’s low towards the end of the session with the Nifty going down to 5,141 and the Sensex touching 17,094. Closing near the lows, the market logged its third successive day in the red. At the close, the Nifty lost 21 points to 5,148 and the Sensex finished at 17,119, down 74 points.
The advance-decline ratio on the NSE was in favour of the decliners at 416:1253.
In the broader market space, the BSE Mid-cap index declined 1.60% and the BSE Small-cap index tanked 1.76%.
BSE TECk (up 0.76%); BSE IT (up 0.68%) and BSE Healthcare (up 0.45%) were the sectoral gainers. The losers were led by BSE Realty (down 2.56%); BSE Metal (down 2.16%); BSE Consumer Durables (down 2.06%); BSE Auto (down 1.99%) and BSE Power (down 1.86%).
The top gainers on the Sensex were Bharti Airtel (up 2.48%); Hero MotoCorp (up 1.67%); HDFC Bank (up 1.45%); Sun Pharma (up 1.30%) and Wipro (up 1.27%). The major losers were Mahindra & Mahindra (down 5.73%); Tata Steel (down 4.03%); Maruti Suzuki (down 2.96%); State Bank of India (down 2.48%) and DLF (down 2.30%).
The top Nifty gainers were Ranbaxy (up 3.34%); Bharti Airtel (up 2.38%); Hero MotoCorp (up 1.71%); HDFC Bank (up 1.59%) and Dr Reddy’s (up 1.58%). The main laggards were Reliance Infrastructure (down 7.55%); Reliance Power (down 6.85%); M&M (down 6.11%); Tata Steel (down 3.80%) and Maruti Suzuki (down 3.28%).
Markets in Asia settled higher on optimism from Europe and economic recovery in Japan. The appointment of new leaders in Greece and Italy raised hopes that a solution to the two-year debt crisis in the continent would end soon. Besides, Japanese gross domestic product (GDP) recorded a 1.5% growth in the September quarter, after three quarters of decline. The development is seen as a sign of recovery after the devastating earthquake and tsunami which struck the country in early March this year.
The Shanghai Composite gained 1.92%; the Hang Seng surged 1.94%; the Jakarta Composite climbed 1.43%; the KLSE Composite rose 0.69%; the Nikkei 225 advanced 1.05%; the Straits Times gained 1.40%; the Seoul Composite jumped 2.11% and the Taiwan Weighted settled 2.15% higher.
Back home, foreign as well as domestic institutional investors were net sellers in the equities segment on Friday. While foreign institutional investors offloaded stocks totalling Rs83.26 crore, domestic institutional investors pulled out funds aggregating Rs113.18 crore.
Hit by higher interest and huge foreign exchange losses, Shree Renuka Sugars reported a net loss of Rs618.50 crore for the quarter ended 30th September against a net profit of Rs127.80 crore in the same period last year. The country’s largest sugar refiner further said its overall sales remained low at Rs2,355.40 crore in the concerned period from Rs2,484.50 crore in the year-ago period. The stock dived 26.19% to close at Rs38.05 on the NSE.
Engineering and construction major Larsen & Toubro (L&T) has delivered 12 dry shielded canisters, used for the storage of radioactive waste from nuclear power plants, to the US-based Transnuclear Inc.
L&T said the canisters are intended for leading US-based nuclear utilities and have been manufactured in accordance with the US Code of Federal Regulations and Nuclear Safety Class One standards. The stock shed 0.15% to close at Rs1,328.35 on the NSE.
Fortis Healthcare (India) has reported a consolidated net loss of Rs12.59 crore for the quarter ended 30 September 2011 due to higher interest costs and forex losses compared to a net profit of Rs 74.78 crore in the corresponding period last year. The company’s consolidated total income increased 70.49% to Rs610.09 crore in the quarter under review from Rs357.85 crore in the year-ago period. The scrip declined 4.85% to settle at Rs122.60 on the NSE.
Loan disbursements by the LIC Housing Finance, to developers for the September 2011 quarter stood at Rs412 crore in comparison with Rs1,283 crore in the year-ago period
LIC Housing Finance, a subsidiary of the Life Insurance Corporation of India (LIC), reported 58% dip in its net profit at Rs98 crore for the quarter ended September 2011 on the back of higher provisions for NPAs as mandated by the sector regulator, the National Housing Bank. Net profit of the housing finance company stood at Rs234 crore during the same period last fiscal.
Total income of the company increased by 37% to Rs1,515 crore during this period. Loan disbursements by the LIC Housing Finance, to developers for the quarter stood at Rs412 crore in comparison with Rs1,283 crore in the year-ago period.
Total outstanding loan portfolio of the housing finance company stood at Rs56,098 crore, up by 29% over the same period last year. "While the industry is expected to grow by 15%-20%, LIC HF will grow by 20%-25% in the current fiscal," the company said.
However, net interest margin of the company for the second quarter stood at 2.45% against 2.93% for the same period last year due to rise in interest rates. Gross NPA of the company stood at 0.64% of the total exposure in the second quarter as against 0.74%, while net NPA was at 0.12% as against 0.24% for the same period last year.
On Monday, LIC Housing Finance closed at Rs220.45 per share on the Bombay Stock Exchange, 4.28% down from the previous close.