Negative on the telecom space: Satish Betadpur

Satish Betadpur, CFA, Global Research Director, Independent International Investment Research PLC in an interview with ET Now talks about the telecom stocks.

Your thought on the entire telecom space and also about Bharti’s long-term prospective for the company, do you think they look bullish?

The entire telecom space is still to be wait therein and watch. At this point we are negative on the space because 3G rollout has to happen and both the rollout again, the rollout is going to cost a lot of money and post that we need to figure out what the pricing is. Is it going to be as aggressive as they have had in the past with the regular 2G pricing or will they be more rational and how the competitive dynamics of the industry is going to work out?

Now, if it gets very aggressive in 3G, then all these stocks are going to go down substantially from these levels. But if there is rationale pricing, then we believe that there may be upside. So it’s still a mixed call at this point. We do not really want to take that call right now and we are negative on the space based on what we know as of now.