Shares of state-owned telecom equipment company ITI jumped 19 per cent and hit a 52-week high of Rs 107.90 on the BSE on Thursday supported by heavy volumes. The trading volumes on the counter jumped an over 6-fold with a combined 9.3 million equity shares changing hands on the NSE and BSE till 09:55 am.
The stock has rallied 32 per cent in the past two trading days after the Department of Telecommunications (DoT) reportedly asked state-owned Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam (MTNL) to exclude Chinese gearmakers from supplying 4G telecom equipment. Private telecom operators have been asked to consider staying away from such Chinese firms.
The decision was taken during a meeting of the telecom department, late on Wednesday evening, sources told Business Standard. It is learnt that BSNL and MTNL representatives were not part of the meeting, but have been informed about the decision. READ HERE
ITI is a public sector undertaking in the telecommunications technology segment. The company has a diverse suite of products including defence security encryption products, optical and data network products and passive infrastructure products such as gigabit passive optical network and manage leased line products, multi-capacity encryption units, electrical products such as smart energy meters, smart cards, solar panels, settop boxes and mini personal computers and Internet of Things products.
Besides offering the telecom solutions and customized support, ITI has a dedicated Network System Unit for executing turnkey projects for installation and commissioning of telecommunication networks. The company intends to upgrade and invest in the technology, through the acquisition of technology from strategic partners with a specific focus on high growth industry segments.
The company operates a data centre at Bengaluru and currently also offers its services to government institutions/departments, banks etc.
Last month, BSNL staff had written to Prime Minister Narendra Modi to stop domestic telecom gearmakers from scuttling the company’s revival plan by putting a spanner in the tender for sourcing 4G equipment. In the letter, they had alleged that the issue raised by the industry body, Telecom Equipment and Services Export Promotion Council (TEPC), was a ploy to stall the 4G equipment procurement and the launch of 4G services by BSNL.
BSNL would be the last company to join the 4G bandwagon as the company prepares to compete with the private telecom companies. The exclusion of Chinese telecom equipment suppliers may delay the 4G journey for BSNL.
