Subscribe RSSThe end development: The only party smiling is the government, which has mopped up a cool $14.6 billion, with the broadband wireless auction still to imitate. This is nearly double about $7.51 billion expected in the federal budget. No company won rights in all 22 waiting areas . The maximum number of service areas won by one operator was 13.
Brokerages predictably have gone on an earnings sense cutting spree for the bidders. Citigroup estimates an impact of 3.3 rupees a share on the earnings per percentage of Bharti Airtel , which won 13 circles for 122.95 billion rupees; 1.9 rupees for Idea Cellular, which won 11 circles for 57.69 billion rupees; and 4.5 rupees a helping for Reliance Communications, which won 13 circles for 85.85 billion rupees.
The common theme: Balance sheets will be stretched as companies take on straitened to pay for 3G bandwidth.
But is it still all gloom and doom for the sector? Maybe not.
With the 3G auctions over, one big cloud has blown away that was hanging over the earnestness. No one blew major money on all areas, “so the financial burden is lesser than what it would have been otherwise,” says Prashant Singhal, crumpet of telecom at Ernst & Young.
