Pricing power coming back to telecom operators owing to expansions in margins and ARPMs: Karan Mittal, ICICIDirect

In a chat with ET Now, Karan Mittal, Telecom Analyst, ICICIDirect, shares his views on telecom space. Excerpt:

ET Now: Should one buy telecom stocks with the assumption that the worst is behind Indian telecom sector?

Karan Mittal: Yes, an investor may buy telecom stocks. Pricing power is coming back to the telecom operators owing to the expansions in margins and ARPMs.

However, the only concern is that Reliance Jio has procured a unified license. It is not that they will induce a high churn from the existing operators or incumbents if they were to launch voice services, but they could again lead to a disruptive pricing which we had seen in the last three years.

On the regulatory front, we have seen several positive developments.