Mumbai: Telecom stocks on Thursday fell up to 4 percent after the government fixed a higher base price for 3G spectrum auction at Rs 3,705 crore per mega hertz.
Shares of Idea Cellular fell by 3.92 percent to end at Rs 159.50 on the BSE. During the day, the stock lost 4.48 percent to Rs 158.55.
Bharti Airtel fell by 2.8 percent to Rs 363.25 before settling marginally higher at Rs 375.15 in an overall strong market.
Reliance Communications dropped 1.13 percent to settle at Rs 78.75 on BSE.
Eyeing a record-high spectrum sale of Rs 1 lakh crore, the government yesterday fixed the base price for 3G auction at Rs 3,705 crore per mega hertz. Government would garner an estimated Rs 17,000 crore from the 3G band.
Along with the spectrum in 2,100 MHz band, which is used to offer 3G services, the government will also offer second generation or 2G mobile airwaves in three different bands in an auction scheduled for March 4.
The base price suggested by the Telecom Commission is around 11 percent higher than what telecom firms paid for in the 2010 auction.
It is also 36 percent higher than sectoral regulator TRAI's recommendation of Rs 2,720 crore per Mhz.