Stock takes a beating as talks between the two telecom majors, Vodafone and Idea Cellular, is seen to be hitting its revenues and present a weak growth outlook for the firm in near and long term.
Though Trai began on a conciliatory note, saying that they do understand that there are issues related to spectrum and tower infrastructure, but from thereon it started mounting its defence
Telcos will have to invest in data spectrum and data networks, thus wanting capital release from asset sales, says Rumit Dugar, director-India TMT Research, Religare Capital Markets. He also says, at the margin it will reduce stress on the balancesheets of the companies.