With a presence in 22 circles, Bharti Airtel has a better footing than Reliance Jio, says GV Giri, IIFL Institutional Equities.
Bharti Airtel, on Friday, acquired 4G spectrum rights from Aircel in 8 circles for Rs 3,500 crore. Speaking to CNBC-TV18, GV Giri of IIFL Institutional Equities says: "This will reassure the market that Bharti Airtel has the spectrum needed to tackle a surge in data volumes, which will invariably happen if Reliance Jio comes whenever it does."
With a presence in 22 circles, Bharti Airtel has a better footing than Reliance Jio, Giri says, adding, he prefers Bharti Airtel stock and has a target price of Rs 385 per share.
Telecom industry has now grown and come under many regulations. Hence, with an increased licence fee and spectrum charges, the premium of Rs 3,500 crore was worth paying, Giri says.
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First Published on Apr 11, 2016 09:13 am