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Bharti Airtel, Idea gain on lower 2G auction prices


India's wireless services providers rose after an auction of 2G airwaves attracts less demand than targeted by the government because prices are seen as too high.

The low prices give a respite to the debt-ridden industry, with the government raising less than one fourth of the targeted Rs 40,000 crore via the auction, which is being undertaken after the Supreme Court ordered the cancellation of permits granted in a scandal-tainted process in 2008.

Barclays Capital said the lower pricing is a "positive outcome" for the industry, but warned there is still a lack of clarity on the timing of the government's next step to find market prices for spectrum.

Bharti Airtel gained 3.2 percent, while Idea Cellular rose 3.5 percent as of 1:54 p.m.

Copyright Thomson Reuters 2012

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