Telecom stocks are expected to trade range-bound next week, while action in the medium term will mostly be subdued on account of regulatory headwinds and expected outgo on account of 2G spectrum auction bid and one-time spectrum fee. Unless and until there is clarity on impending financial issues, regulatory issues, till the time 2G auction and one-time spectrum fee are finalised, and also there is a decision on spectrum refarming before all these things get finalised.
Though the decision of the Empowered Group of Ministers to levy one-time spectrum fee for bandwidth held beyond 4.4 MHz for GSM operators and 2.5 MHz for CDMA operators prospectively, will financially strain the companies, it has brought clarity over the issue. EGoM's decision has to be approved by the Cabinet, which is expected to meet on Tuesday.
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