Telecom companies calling for a closer look

The industry stands to directly benefit from Apple's latest product launch.

Vikram Barhat 15 November, 2017 | 6:00PM
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The gangbuster launch of the new iPhone X and booming demand for the flagship device has boosted not just  Apple (AAPL), but also many other companies across industries. One industry to directly benefit is telecommunications. Both in the United States and Canada, leading wireless carriers stand to gain as more subscribers change plans and upgrade their devices.

A trend like this is particularly beneficial to companies south of the border, where there has been a significant disconnect between the rapidly surging S&P 500 Index and the telecommunications sector, one of the worst performing sectors so far this year. While the S&P 500 is up more than 17%, the S&P 500 Telecommunication Services Index has cratered more than 14% on a year-to-date basis, as of Nov. 10, 2017. By contrast, the S&P/TSX Capped Telecommunication Services Index has rocketed almost 20% for the same period.

Despite the divergence in their market performances, telecom companies on both sides of the border are pushing hard to diversify while keeping pace with rapid technological evolution and changing consumer trends. In the process, they are becoming increasingly reliant on smartphones and the internet for revenue.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Apple Inc146.07 USD-0.52Rating
AT&T Inc27.28 USD0.31Rating
BCE Inc64.72 CAD-0.26Rating
Rogers Communications Inc Class B59.65 CAD0.18Rating
T-Mobile US Inc129.51 USD-1.09Rating
Verizon Communications Inc54.38 USD-0.07Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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