Telecom sector may remain three-player market, Vodafone Idea seen surviving

ARPU gains, hopes of government intervention and upgrades for Vodafone Idea strengthen Street's view

Telecom stocks have been among the biggest gainers over the past month on the back of strong March quarter results, greater interest of technology giants in this sector, and expectations of a gradual increase in tariffs over the next few quarters.

The lower impact of the Covid-19 crisis and a jump in data consumption have boosted their attractiveness. Though Bharti Airtel has moved up 7.1 per cent, the biggest gainers have been Bharti Infratel (which has surged 33.8 per cent) and Vodafone Idea, which is up 141.7 per cent over this period. Thanks to the Bharti twins, the sector has been