Telecom Stocks Outlook for the week – 08 to 12.06.2015
(Seen
tracking broader market next week)
( www.rupeedesk.in )
Telecom
stocks are expected to remain negative to range bound taking cues from the
benchmark indices that are expected to move sideways. Share indices are
expected to open down as global markets declined after Greece delayed its loan
repayment to the International Monetary Fund
.
The
telecom stocks are unlikely to rebound in near term due to inherent weakness in
the sector. The stocks of telecom firms have remained mainly range bound for
the last many weeks, with the sector leader Bharti Airtel and Idea Cellular
bucking the trend occasionally.
Telecom
stocks might gain some momentum, if the Telecom Commission, the apex
decision-making body of the Department of Telecommunications takes a final
decision on the long-pending issue of spectrum sharing and trading.
DoT
is in the process of finalising the guidelines and will place it before the
Cabinet for final
approval
before June-end. The Telecom Commission is expected to meet on Jun 11 to take a
final call on the issue. The commission had earlier sought clarifications from
TRAI, which the latter submitted last month.
Spectrum
sharing guidelines will allow telecom companies to share their unutilised
airwaves with other service providers, while norms on trading would allow
telecom carriers who have a lower subscriber base or unutilised spectrum, to
trade it.
Telecom
operators have been eagerly awaiting some clarity from the government on the
issue for the last one year. They had pleaded with the government to come out
with the guidelines ahead of the blockbuster spectrum auction held in March.
