Bearish on telecom sector: UTI Asset Management

In a chat with ET Now, Swati Kulkarni, Senior VP & Fund Manager, UTI Asset Management Company, shares his views on telecom sector.

ET Now: What about telecom?

Swati Kulkarni: The competitive intensity has gone up and if you consider the opex that is going to be there going forward. As the number of subscribers go up, they will have to go for more towers, so the opex will go up. And the spectrum allocation is likely to increase the capex also in the sector. So the margins are going to be under pressure and the penetration levels are already high. So I would not look at that sector very positively at this point of time.