12:50 PM -- It's been quite a day for the Indian telecom sector. In addition to the major step taken towards the award of long-awaited 3G spectrum, two of the country's key operators provided financial updates, with mixed results. (See India Edges Closer to 3G.)

Reliance Communications Ltd. (RCom) reported first-quarter revenues of 53.2 billion rupees (US$1.26 billion), up nearly 24 percent, and net income of INR15.1 billion ($357 million), also nearly 24 percent better than a year ago. But analysts noted that most of that profit came from an accounting change, and not from operations, and that revenues fell below expectations. As a result, Reliance saw its share price fall by 12.65 percent to INR436.8.

Meanwhile, Mahanagar Telephone Nigam Ltd. (MTNL) , which operates in New Delhi and Mumbai, saw its first-quarter revenues from services fall year-on-year, while its profit increased slightly. (See MTNL Reports Q1.)

But the news that it is guaranteed 3G spectrum in both its major city service areas helped its share price rise by 6 percent to 110.5 rupees.

— Ray Le Maistre, International News Editor, Light Reading

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