MNP to result in bloodbath on the bourses

Mobile number portability (MNP) is much-awaited by subscribers, and it is certainly going to make business challenging for service providers.

“We estimate a 6-9 per cent decline in ARPUs, a 50-82 bps negative impact on margins and consequent EPS declines to the tune of 8-39 per cent in FY 2010-11, with consequent changes in target prices by 7-22 per cent. We remain negative on the sector and maintain `under performer' ratings on Bharti Airtel (downgrade target price from Rs 289 to Rs 269) and RCOM (downgrade target price from Rs 167 to Rs 151), while we downgrade Idea Cellular to `sell' from `under performer' (downgrade target price from Rs 45 to Rs 35),” says telecom sector event update of Karvy.

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