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Bharti Airtel, Idea Cellular gain for second day after TDSAT verdict 04-Jul-2012

Meanwhile, the BSE Sensex was up 29.88 points or 0.17% to 17,455.59

Bharti Airtel had underperformed the market over the past one month till 3 July 2012, rising 6.16% compared with Sensex's 9.15% surge. The scrip also underperformed the market in past one quarter, sliding 5.11% as against Sensex's 0.98% fall.

Idea Cellular had underperformed the market over the past one month till 3 July 2012, rising 7.48% compared with Sensex's 9.15% surge. The scrip also underperformed the market in past one quarter, sliding 18.06% as against Sensex's 0.98% fall.

Bharti Airtel rose 3.11% and Idea Cellular jumped 5.41%.on Tuesday, 3 July 2012 after the telecom tribunal on Tuesday gave a split verdict in the 3G intra-circle roaming case. Bharti Airtel, Idea Cellular and the unlisted Vodafone will continue to offer third-generation services on a pan-India basis after a two member bench of the telecom disputes tribunal on Tuesday gave a split verdict on a petition filed by wireless operators challenging the telecommunication department's order banning them from forming alliances to offer third-generation roaming services in areas where they don't hold bandwidth.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) chairman S.B. Sinha ruled in favour of telecom companies on Tuesday. He said the telecom department's December order didn't follow the principles of natural justice and these wireless operators can continue to offer the services. However, the other member of the two-judge bench, P.K. Rastogi, ruled against the telecom firm. He said operators can't provide communications services in areas where they don't hold 3G bandwidth.

Bharti Airtel, Idea Cellular and the local unit of UK's Vodafone Group PLC in July 2011 signed agreements to provide 3G roaming services. In late December, the telecom department asked the companies to stop such services, saying they violated rules by signing the roaming agreements. Bharti, Idea and Vodafone India then went to the tribunal, which stayed the ban. Bharti has 3G bandwidth in 13 of India's 22 telecom service areas, while Idea has access in 11 and Vodafone India in nine.

TDSAT is a quasi-judicial body which decides on disputes in the telecom and media sectors.

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