SingTel: 32% associate Bharti Airtel, faces the prospect of a US$1b fine, according to unnamed sources. The Indian govt alleges that local telcos have underpaid for a series of 2G cellular licences issued back in 2008. Incumbents Bharti, BSNL, Vodafone were reportedly allotted more than their stipulated share of the 2G spectrum without incurring any upfront fees, costing the govt a combined US$8b in lost revenue. Amidst the fiasco, telco minister, Andimuthu Raja has resigned...
A US$1b fine would lower SingTel’s EPS by ~S$0.026; this compares with consensus estimates of $0.243 FYMar11 EPS. News likely to weigh on SingTel share price, despite upgrades by Goldman, CLSA earlier this wk.
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