Only Bharti has the cash flow to foot the 3G bill: Raamdeo Agarwal

Raamdeo Agarwal, MD, Motilal Oswal Financial Securities in an interview with ET Now talks about telecom.

Do you think that telecom has now turned the corner or is there still more pain to come for investors?

There are two sources of pain. One is the of course uncertainty about the regulations. Everyday the rules keep changing and maximum news flow is about telecom. Second is that the industry has ended up paying almost some 10,000-20,000 crores to the government upfront and except for Bharti, I do not see anybody else having the cash flow to foot the bill.

So it has become very uncertain if the cooperative landscape is clear. Regulatory environment is one handicap.

Internet is going to happen, penetration is going to increase, ARPUs are going to stabilise at current level or whatever but those things are not possible right now till you know who is in the game and who is going to be out of the game.