A big game of accumulating telecom stocks is under way in india, why it`s indian stocks that are trading at lows bcuz of many reason. always remember it was telecom companies that were largest contributer to service tax when it was introduced for the first time. next is 3G licensing. that is going to be a very big event of value close to 30,000/- crores. first it was 7dec on which date was fixed for auction but later it was postponed due to interest/requests from international telecom oparators requests for participating in the auction. actually they needed more time to accumalate indian telecom stocks so that when foreign companies participate in auction they have full strength to their favour..the day the postponement of auction dates were announced the stocks took dip so that consolidation in stocks can be made and invest in telecom stock... today it`s 1sec pulse that is made the root cause of decline in prices of stocks but it`s not true..very soon when 3G pricing will be made people will know the amount of revenue these companies will genarate to their maximum profits..happy trading..
3G is not just voice telephony it`s more then data/internet exchange, video calls, high speed internet are the few of the options of 3G, 3G sets are already available in the market and are offered at nominal rates mostly camparable with 2G handset that we currently use, regarding response to 3G by Bsnl and Mtnl we all know what there market shares is..?
more over even bsnl/mtnl is charging for incoming video calls..thus renewing the old regime of paid incoming calls..
gsm stands for global standard of mobile communication, in india we have gsm and cdma. where as GSM 2G is low on bandwidth then 3G GSM is on higher bandwidth offering more fast data exchange in simple words it`s broadband on mobile
that`s it u replied ur self to ur answers 3G will be premium service and will be offered at higher cost then 2G in the begining later will be shifted to standard plateform for mobile communication, consumers will be offered service quality based on their profile
Thanks for your meaasge. Can you please explain, if somebody wants to accumulate, the prices should be going up as the demand is increasing & supply decreasing. Why it is happening otherway round?
Hi ambarsaria, which will be your preference out of R com, Bharti Airtel, Idea keeping in view prevailing and will as future circumstance in this sector?
Q3 results are expected to be extremely bad.... if one must get into the telecom sector, i would think a good time to buy would be in jan feb, before the results are announced, as that time, market will be expecting the worst and hence tele stock prices will be very subdued.
Further, since telecom stocks are expected to underperform atleast for the next few quarters, there is no hurry to get into them at this time, and in fact, one should at this stage move into another sector that is performing, or else will find that he/she had capital tied in a stock for a year and not only did the capital did not appreciate.. instead, its probabaly showing a loss..
Careful- Friday idea went lower on huge volumes, there is liquidation going on.
Best wishes,
samir.
PS- there might be some relief rallies in tele stocks,but those should be used to liquidate and not to accumulate.. but as usual, public is going to do exactly the opposite :-)
I think at A discount of 33% over its IPO issue price Idea looks to be at a reasinably good price for accumulation, but still no clear picture about the telecom sector makes one scarry about this sector.
But should be a buy....
For no matter, the sector stock price gone down... For no matter everything will pick up soon... I wonder how SPICE alone moving that much fast.. its only a promoter driven stock.. who is getting benefitted....
Anyways, anybody knows about Idea Infratell demerger...?
Hei samir, welcome to Idea community, Iam seeing you for the first time...
Shall i tell you one reason for the telecom stock to surge like anything even if they give poor Qrtly results, its simple like "Results are above Analysts/Market" expectations... Telecom stocks will comeup like anything and these kind of message float across teh screens, but the real fact is, Big B will accumulate the stocks at very very cheaper price thatsit..
As people are talking about the price of IPO and current price, its very much cheap and you should see the fundamental of this company and go for the decission.
Is this IDEA not an worthy to buy at 50 levels, defently YES. Even its YES for Bharti and RCOM as well....