All telecom stocks have taken a beating in the stock market. Do-Co-Mo started all this with its per second billing plan. All operators came under pressure to comply with per second billing. After DoCoMo it was Airtel which launched with per second billing and then Idea and so on. Everyone seems to be going for per second billing. The operating margins of the telecom companies which was greatly reduced due to the entry of players was even more compressed.
The Central Bureau of Investigation's probe into the 2G spectrum allocation scam further pulled down the telecom stocks. This scam has stopped the allocation of the spectrum for 3G which was to be held in a couple of months time. Presently all telecom stocks seems to be playing the number's game to attract more customers which would enable them to get larger share in the spectrum.
Bharti Airtel also saw disappointing Q2 results which reduced the stock to Rs 292.90 a 52-week low. Reliance communications also saw its stock value decrease to 176.
This presents a great opportunity for the investor to invest in telecom stocks. These stocks seem to have bottomed out already. If you have a long term view it would fetch good returns. However, in a couple of months you would be a able to see a clear picture of where the telecom stocks are heading.
