Skip to Content
Quarter-End Insights

Telecom: Firms Strive to Be More Than 'Dumb Pipes'

U.S. telecoms are working to diversify away from being pure wireless network providers.

Mentioned: , , , , , , , , ,
  • Overall, we view the communications services sector as fully valued at a market-cap-weighted price/fair value of 1.01.
  • U.S. telecom continues to combat the fear of being a "dumb pipe."
  •  China Mobile (CHL) still dominates in broadband even as the mobile subscriber market evens out a bit.

U.S. Telecom Continues to Combat the Fear of Being a 'Dumb Pipe'
Perhaps the most important trend we're seeing in U.S. telecom is the ongoing shift in strategy to diversify away from being a pure wireless network provider.  AT&T (T), in particular, continues to move away from wireless and into satellite television and over-the-top, or OTT, TV via its acquisition of DirecTV and, more recently, the firm's pending entry into the media content space via its acquisition of  Time Warner (TWX).

To view this article, become a Morningstar Basic member.

Register for Free

Brian Colello, CPA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.