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Telecom stocks are expected to trade positively next week as they continue to hold above key support levels, and also because key companies of the sector are seen holding pricing power. This is expected to be a turn around year for Indian telecom. The sector is seen having power to raise tariffs, once the spectrum price has been discovered, and will also witness consolidation. Tata Teleservices Ltd, which provides its services in Delhi and National Capital Region under the Tata Indicom brand, has raised tariffs to 1.5 paise/second from 1.2 paise/second for both local and STD calls, effective Jan 2. Others are expected to follow soon as telecom companies have been long stressing that there is a need to revise tariffs upwards. Investors would also eye the outcome of the meeting of the Empowered Group of Ministers on spectrum on Monday, which will take decisions on auction modalities for the upcoming sale of spectrum in 1,800 MHz and 900 MHz bandwidth. Major telecom stocks such as Bharti Airtel Ltd and Idea Cellular Ltd have continued to hold above their crucial support levels and the momentum for them is seen strong in the coming sessions.
Telecom stocks are expected to trade positively next week as they continue to hold above key support levels, and also because key companies of the sector are seen holding pricing power. This is expected to be a turn around year for Indian telecom. The sector is seen having power to raise tariffs, once the spectrum price has been discovered, and will also witness consolidation. Tata Teleservices Ltd, which provides its services in Delhi and National Capital Region under the Tata Indicom brand, has raised tariffs to 1.5 paise/second from 1.2 paise/second for both local and STD calls, effective Jan 2. Others are expected to follow soon as telecom companies have been long stressing that there is a need to revise tariffs upwards. Investors would also eye the outcome of the meeting of the Empowered Group of Ministers on spectrum on Monday, which will take decisions on auction modalities for the upcoming sale of spectrum in 1,800 MHz and 900 MHz bandwidth. Major telecom stocks such as Bharti Airtel Ltd and Idea Cellular Ltd have continued to hold above their crucial support levels and the momentum for them is seen strong in the coming sessions.
