Telecom
Stocks Outlook for the week – 09 to 13.05.2016
Bharti Airtel, RComm seen up next
week
( www.rupeedesk.in )
Stocks of telecom service providers
are seen trading higher next week as investors may react positively to their
recent announcements. Bharti Airtel's arm Bharti Airtel International
(Netherlands) BV signed an agreement with Helios
Towers Africa to sell its 950 towers in the Democratic Republic of Congo. The deal will help the
company cut debt and capital expenditure. Reliance communications Ltd
kick-started a price war by offering 10 GB of 4G data bundled with 150 voice
minutes for 93 rupees per month.
The move is likely to free the
spectrum for Reliance Jio Infocomm Ltd, as Reliance Communications is not
offering any handset subsidy for the upgrades so far; thus, its code divisional
multiple access users would need to invest in new 4G
global systems, which could limit immediate 4G adoption.
Aditya Birla Group company Idea
Cellular Ltd may spend $1.3 trln in adding data spectrum at the
upcoming auctions, expected
around July. As per media reports, analysts expects Idea to cherry-pick data
spectrum in Maharashtra, Kerala, Madhya Pradesh, UP-West circles, where the
company has seen a sharp surge in incremental revenue market share over the
past one year.