Telecom-related companies’ shares zoom up to 19% intraday as DoT amends licensing rules – know details here
The Department of Telecommunications has added the word ‘expansion’ to plug a gap in previous rules that were issued to restrict the use of non-trusted telecom gear in telecom networks.
Shares of telecom-related companies – ITI Limited, Tejas Networks, Indus Towers, and D-Link zoomed up to 19 per cent on the BSE intraday as the government on Monday amended the license rules and barred the use of non-trusted telecom gear for the expansion of communications networks in the country.
According to amended rules for the telecom licenses issued on Monday, the Department of Telecommunications has added the word ‘expansion’ to plug a gap in previous rules that were issued to restrict the use of non-trusted telecom gear in the telecom networks.
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"With effect from June 15, 2021, the licensee shall only connect trusted products in its network and also seek permission from designated authority for upgradation or expansion of existing network utilising the telecommunication equipment not designated as trusted products," it said.
Individually, ITI shares surged most of all, up by over 19 per cent to Rs 116.8 per share, followed by Tejas Networks shares up 10 per cent to Rs 506.8 per share, similarly, D-Link shares also grew nearly 10 per cent to Rs 140 per share and Indus Towers shares jumped over 5 per cent to Rs 224.5 apiece on the BSE intraday, as compared to 0.84 per cent fall in the S&P BSE Sensex at Rs 03:10 PM.
In 2020, the government approved the National Security Directive on the Telecommunication Sector, a PTI report said, adding that under the directive, the government will declare a list of trusted sources and trusted products for installation in the country's telecom network.
Till date, the government has not included any Chinese equipment in the list, the report further read.
A trusted telecom product or equipment source is a product, a company, or a technology that has been deemed safe by the government of a country for use in crucial and critical infrastructure.