New telecom guidelines defer several important decisions: Macquarie

Many important decisions have been deferred in the new set of guidelines for the telecom sector, while the regulator is expected to come up with its recommendations on the spectrum auction mechanism as many issues on spectrum that were absent, according to a note by Macquarie Group.

"The telecom ministry press conference turned out to be a fairly routine affair. Many important decisions were ''deferred''. Mixed signals emerged even as the government took small steps towards more regulatory clarity," Macquarie said in a note to its clients.

"No clarity was provided on key issues such as spectrum pricing, re-farming, auction mechanism and exit policy. The ministry has guided that further clarity on these issues will be provided ''as soon as possible'', the note said.

"We expect TRAI to provide its recommendations on the auction mechanism and other issues within the next 2-4 weeks," it added.

However, the general direction was favourable, though there were no earth-shaking announcements, it said.

"Overall, the juggernaut is moving in the right direction for incumbent operators, notably Bharti," the Australian investment bank said in a note to its clients.