JOIN USExperts feel that the huge cost related to rolling out the new technology will not have much of an impact on share prices of telecom companies since it has already being factored by investors.
“The 3G technology will create new business for the companies which have placed their bids in the auction. Though they have to shell-out huge cash for developing infrastructure for the technology, its impact has already being factored in by the market and will now have positive effect on the telecom stocks,” CNI Research CMD Kishor P Ostwal said.
Unicon Financial chief executive Gajendra Nagpal said all companies who have participated in the auction have place their bid aggressively, but have placed their bids smartly in circles where they are already present.
Further, Nagpal said it will definitely have an impact on balance sheet of companies but this is a capital investment and companies will reap gains after at least an year or two years. But with auction for BWA spectrum yet to begin, the revenue mop up could go up further.