Telecoms stocks plunge on 2G pricing proposals

The telecoms shares extended their fall on Tuesday as Trai's pricing proposal for 2G spectrum continued to hurt sentiment.

The Telecom Regulatory Authority of India (Trai) on Monday recommended based price of Rs 3,622 crore for a megahertz of spectrum at pan-India level - around 10 times more than the minimum price for spectrum that was allocated for 2G service in 2008 by then telecom minister A Raja.

Trai's proposals have drawn a lot of protest from telecom companies.

Bharti Airtel was down 3.2 per cent at 302.35, Idea lost 3.5 per cent to Rs 80.35 while RCom slipped over 1 per cent.

The Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee will take the final call on auction of spectrum and telecom licence-related issues, Telecom Secretary R Chandrashekhar said.