Telecom Stocks Outlook for the week – 16 to 20.06.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Major telecom stocks are expected to
have a good run next week with the government
indicating speeding up of policy
decisions in the sector. Structurally Indian telcos are
looking relatively appealing versus
many other regional telcos at the moment. For a
change, we have pretty much every
telco singing the same tune on increasing prices
and being rational on competition,
and then there is also hope that the regulatory
environment can improve as well. This
is all good and stocks can re-rate further.
Reliance Communications is likely to
gain because of its decision to expand 3G network
across the country. Bharti Airtel and
Idea Cellular are expected to remain range bound.
Reliance Communications will expand
3G services to five more circles, taking its 3G
services footprint to 18 circles. The
indication by the new government to allow spectrum
sharing is likely to give positive
impetus to the sector. However, we feel that the
approval for full number portability
by the Telecom Commission is likely to be a
dampener, as only larger telecom
operators have benefitted from it. The Telecom
Commission yesterday gave
in-principle approval for full mobile number portability.