Kotak Institutional Equities has released a report on the Indian telecom sector.

As per the report, for the third quarter of financial year 2012, the company expects the performance of the incumbents to improve.

It expects to see the sector regaining momentum in terms of volumes. Also, a modest sequential return per month (RPM) uptick is expected to aid robust India wireless KPIs and financials for the three listed Indian wireless operators.

Strong seasonality and currency translation benefits are likely to drive particularly strong financial performance from Bharti Africa.

Net, net, the quarter should allay industry concerns pertaining to slow growth in minutes per usage. However, the regulatory environment remains in an overhang.

The company continues to be positive on Bharti Airtel and Idea Cellular.

A copy of the report is attached.