Lot of negative news is the reason for sharp decline in telecom stocks: Angel Broking

In an interview with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking shares his views about the telecom space.

ET Now: What is the call on telecom sector?

P Phani Sekhar: After the price falls that we saw last year, the situation was improving there but now there are new concerns that have cropped up regarding the mobile license renewals slated for 2014 and you are actually hearing voices about refarming to the higher 1800 MHz from the current 900 MHz which will significantly increase the capital cost for the existing companies. You are talking about roaming arrangements being renegotiated. You are talking about re-pricing of excess spectrum. All these are negative news for the existing players and the street in the current set of circumstances is clearly not liking them. So that explains the steep fall that one has seen in Bharti and one needs to see the sequence of news flow to see where these stocks go from here.