BWA spectrum expensive: IIFL

As Infotel Broadband walked away with the highest number of circles in the broadband spectrum allocation (BWA), three telecom majors have opted out of the race citing that it was a costly affair.

Vodafone, Reliance Communications (R-Comm) and Idea Cellular dropped out of the auction while Bharti Airtel has bagged four circles for Rs 3,314crore for the spectrum.

He added that in the next two to three years we are not going to see the impact in terms of lost revenue from the BWA spectrum. ''The impact will be a slightly on a longer term. So I would say that given how expensive 3G was, probably the companies didn't pay out so much for BWA.''

CNBC-TV18  shares with domain-b its exclusive interview by G V Giri of IIFL.

Now we understand that Idea and R-Comm completely opted out even Bharti has gone for four sectors where they wouldn't have paid too much. Do you think there is reason to be now less bearish on telecom stocks or the damage has already been done by 3G?

No whatever damage is done, the stock price doesn't wait for too long to move in response. So the stock price movement from here on will be dependent upon the benefits or damages that will come in the future.

As far as BWA is concerned it's a little difficult to predict. It looks Infotel Broadband is the only company with broadband spectrum on an all India basis of that magnitude of 20MGHz.