Telecom
Stocks Outlook for the week – 14 to 18.09.2015
(Bounceback seen post spectrum trading nod)
Telecom
stocks, which have been trading in the red for the last two weeks, are expected
to bounce back to positive zone after the government allowed trading of
spectrum, a move hailed by both the service providers and sector experts.
The
recent events that have made spectrum trading possible are a big positive for
the sector. The
spectrum
trading is likely to facilitate consolidation in the sector and most telecom
companies are expected to benefit from the decision.
Reliance
Communications Ltd could emerge the biggest beneficiary of the recently-approved
proposal
of spectrum trading. The company might liberalize its 800 MHz spectrum and hand
it
to Mukesh Ambani's Reliance Jio Infocomm Ltd. The potential deals with Reliance
Communication
post the issue of norms on sharing and trading would help Reliance Jio improve
its network quality.
