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Telephone & Data Systems Inc., Vodafone Group Plc., Shaw Communications Inc., Qualcomm Inc. and American Tower


Published on 2010-11-19 07:11:40 - Market Wire
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CHICAGO--([ BUSINESS WIRE ])--Today, Zacks Equity Research discusses the Telecommunications Industry, including: Telephone & Data Systems Inc. (NYSE: [ TDS ]), Vodafone Group Plc. (NYSE: [ VOD ]), Shaw Communications Inc. (NYSE: [ SJR ]), Qualcomm Inc. (Nasdaq: [ QCOM ]) and American Tower Corp. (NYSE: [ AMT ]).

A synopsis of todaya™s Industry Outlook is presented below. The full article can be read at [ http://www.zacks.com/stock/news/43518/Telecom+Industry+Outlook+-+Nov.+2010 ]

Telecom carriers and equipment providers that offer the most attractive opportunities are focused on 3G wireless technologies, emerging 4G technologies, broadband and fiber-to-the-home/premises networking. We have seen that sector diversity is a less secure natural hedge in todaya™s increasingly correlated world markets.

The telecommunications industry as a whole offers a number of attributes that are difficult to ignore from the standpoint of long-term investors.

  • Telecommunications is a necessary utility: The need for telecom in both rural and urban areas, and its role in the infrastructure of both developed and developing markets, continues to grow. In addition, economic stimulus plans in the U.S. and throughout the world should boost select service providers and equipment manufacturers.
  • Massive growth of smartphones: In spite of the challenging global economy, the growth in the smartphone market maintains its impressive trend. This primarily reflects a shift in consumer preference towards feature-enhanced PDA devices from ordinary mobile handsets used primarily for voice telephony. This opportunity provides scope for telecom service providers, equipment manufacturers, chipset developers and wireless tower operators to retain new users and grow revenues moving forward.
  • International diversification: While diversification within a country offers only limited protection in the current highly-correlated world equity markets, it offers hedging opportunities from local economic weakness and associated currency exchange differentials.

Companies that match well with the aforementioned considerations include Telephone & Data Systems Inc. (NYSE: [ TDS ]), Vodafone Group Plc. (NYSE: [ VOD ]), Shaw Communications Inc. (NYSE: [ SJR ]), Qualcomm Inc. (Nasdaq: [ QCOM ]) and American Tower Corp. (NYSE: [ AMT ]).

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