Shares of Reliance Communication were up by 2.31 percent at 741.05 after Department of Telecommunications (DOT) gave positive response on use of dual technology by mobile phone operators. Reliance Communication, which is planning to expand its GSM services across the country will benefit from the decision of Telecom Authority.

With Dual technology, service providers can offer services for both GSM and CDMA customers with same license. The recommendation of DOT will be finalized after clearance in meeting of the Telecom Commission, which is looking into the controller’s advices on licensing reforms.

DOT is in favor of allowing dual technology, but according to reports, the final decision will depend on the availability of spectrum.

The Department is likely to continue with the subscriber based spectrum allotment criteria and the availability of license policy is on first-come-first-serve basis. The DOT officials were earlier talking about possibility of introducing auction based system for the spectrum. The Spectrum is limited and many telecom companies have applied for license.

However the Department of Telecom, in its recommendation, opposed any limit in the number of operators in a circle and had increased the limit of cross-holding in case of fusion, resulting in sector’s further growth.

The day was good for telecom sector as shares of Public sector
company MTNL rose by 5.99 percent and VSNL was up by more than 8
percent. Market Analysts are suggesting investors to enter VSNL as the
stock may go up to 650 levels very soon.

However, Bharti Airtel and Idea Cellular could not perform well in today’s market.