The telecommunications industry is one of the world’s most dynamic and competitive industries. More than ever, telecom companies need to keep up with rapid technological changes. Some of the biggest names in this industry have struggled as new technologies emerge and other companies find more innovative ways to approach their business. Because of this, it can be challenging for investors looking to invest in this space. However, much like any other industry, there are winners and losers regarding diversified telecommunication services stocks. Here are the four best-diversified telecommunication services stocks you should buy right now.
Iridium Communications (IRDM)
One of the most important factors when investing in a technology company is to make sure it has a unique value proposition and a sustainable edge over its competitors. This is especially true in the telecom industry, where dynamic and innovative companies are fighting for a piece of the growing pie. One of the most exciting technologies to come out of the telecom space recently is satellite communication. The satellite communication industry is dominated by a single company: Iridium Communications. Founded in the late 90s, the company spent almost two decades and billions of dollars building a satellite communication network that provides voice, data, and mobile communication services to individual customers, businesses, governments, and organizations across the world.
Telecom Argentina (TEO)
Telecom Argentina is one of South America’s most exciting and interesting telecommunications companies. The company is the largest integrated telecommunications company in the region, with a market capitalization of $12 billion. Telecom is a highly diversified company operating in various telecommunications industry segments, including fixed-line, mobile, Internet/data, satellite/sales, and managed services. The company’s mobile business is its most important segment, generating around $5 billion out of $8.5 billion in annual revenue. Telecom is the second-largest mobile operator in the country, behind only America Movil, and has a market share of around 30%.
KT Corporation (KT)
KT Corporation is a massive South Korean telecommunications company that is best known for operating the country’s fixed-line and mobile networks. The company has around 45 million mobile subscribers, about 70% of the country’s total mobile subscriber base. The company also operates one of the most advanced fixed-line networks in the world. It provides a wide range of services, including broadband Internet, data, video, and voice. The company’s fixed-line services have been increasing in recent years due to the high penetration of broadband Internet in South Korea.
Globalstar is one of the oldest companies on this list. Founded in the late 90s, Globalstar developed and deployed a satellite-based wireless communication network that provided voice, data, and mobile communications worldwide. However, the company struggled for a long time because of its high capital expenditure requirements and declining revenue from its core satellite voice and data service. Recently, though, things have started looking up for Globalstar. Last year, the company received FCC approval to launch its next-generation low-Earth-orbit (LEO) wideband commercial satellite network. The new LEO network is expected to increase the company’s throughput by a factor of 7-10 and is expected to be completed and fully operational by 2021.
Investing in the telecommunications industry can be an enriching experience due to its long history of technological innovation and high demand. However, the industry’s volatility and rapid change can also be challenging. This is why it is essential to choose wisely when selecting a company or stocks to include in your portfolio. When investing in this space, you must do your homework and find companies that offer a sustainable edge in a competitive and dynamic industry.
The Bottom Line
The telecom industry is one of the world’s most dynamic and competitive industries. Therefore, it is essential to do your homework and find the best stocks in this space that offer a sustainable edge in a competitive environment. These four stocks are some of the best-diversified telecommunication services stocks you can buy now. In addition, they offer investors exposure to different segments of the industry and a wide range of potential benefits and returns for shareholders.