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

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Apple Inc116.87 USD-0.54
AT&T Inc26.72 USD-0.15
BCE Inc55.00 CAD-0.47
Rogers Communications Inc Class B52.35 CAD0.00
T-Mobile US Inc112.42 USD-0.57
Verizon Communications Inc56.75 USD-0.87

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.

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies