Vienna - Austria's largest telecommunications provider Telekom Austria AG on Wednesday reported a 26.3-per-cent profit drop to 96.3 million euros (141.5 million dollars) in the second quarter, as interest costs and marketing expenses affected results.

Earnings before interest, taxes, amortization and depreciation (EBITDA) rose 0.6 per cent to 469.1 million euros, compared with the second quarter of last year.

Marketing costs for the Euro football championships in June dampened earnings, the company said in a statement.

Recently an announcement was made by the Department of Telecommunications (DoT), which has allowed CDMA players to participate in the auctioning of 3G spectrum.

A senior DOT official pointed out, “If there is adequate representation and if the contention is that an operator would have a monopoly then we will make sure that there is a level playing field and will revise the guidelines.”

He also clarified that CDMA spectrum in 3G will also be reserved for BSNL and MTNL. These two companies have already been issued spectrum in the 1800 band and will pay for the spectrum later or after the auction is completed.

Aditya Birla owned Idea Cellular has decided to formally launch its services in the country’s financial capital, Mumbai within the next few days.