Telecom Stocks Outlook for the week – 04 to 08.04.2016
Bharti,
Idea seen down on spectrum sale doubts
( www.rupeedesk.in )
Stocks
of Bharti Airtel Ltd, Idea Cellular Ltd and Reliance Communications Ltd are
seen trading
down
next week over uncertainty around the spectrum auctions. The Telecom
Commission, an interministerial panel, Monday asked the Telecom Regulatory
Authority of India to reconsider its
recommendations
for the quantum of spectrum to be sold, as well its reserve prices, for the
upcoming
auctions.
The panel wanted a review of the parameters adopted for deciding the reserve
price--
currently
at four times the base price of the 1800 MHz band-- of the most sought after
700 MHz
spectrum.
TRAI
will respond to the apex body's comments in the next 15 days. Meanwhile, in
another
development
the Supreme Court Wednesday adjourned hearing on the call drop compensation
matter, and will now hear telecom operators' petition, challenging TRAI's
order, on Apr 5. Telecom service providers are challenging the Delhi High
Court's decision to uphold a notification by TRAI mandating mobile companies
pay their customers for call drops on their network. The companies' outlook on
the fundamental side also looks weak mainly in anticipation of the impending
launch of Reliance Jio Infocomm Ltd.