The telecom sector has been bleeding in trade hit by the recent TRAI recommendations on excess 2G pricing. The recommendations will steeply increase spectrum payouts for incumbent GSM operators such as Bharti, Vodafone, MTNL and Idea.
If these recommendations fructify, Bharti and Idea could see a cut of Rs 33 a share each including all one offs, said Ganesh Duvvuri, vice president of institutional equities research at Edelweiss Capital. However, he added, it is unfair to look at the situation from an earnings point of view. Furthermore, Duvvuri said, spectrum re-farming is going to be a big issue for all the incumbent players including Bharti and Vodafone.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
