Telecom Stocks Outlook for the week (16-20.07.2012)
Telecom stocks next week will take cues from the meeting of
the Empowered Group of Ministers on spectrum, likely on Monday or Tuesday, to
decide on spectrum auction modalities, including the contentious issue of
spectrum reserve price.
On Apr 23, the Telecom Regulatory Authority of India had recommended a reserve price of 36.22 bln rupees per 1 MHz of spectrum in the 1800 MHz band
at a pan-India level, which has been termed as exorbitantly high by telecom operators.
The ministerial panel, headed by Home Minister P. Chidambaram, in its meet Thursday gave approval for the mortgage of spectrum by telecom companies to secure funds from banks and is expected take a call on rollout obligations norms for the auctioned spectrum in its next meet.
