Zacks Industry Outlook Highlights: Verizon Communications, AT&T, Sprint Nextel, MetroPCS Communications and Leap Wireless International

CHICAGO, June 14, 2012 /PRNewswire/ -- Today, Zacks Equity Research discusses the U.S. Telecom, including Verizon Communications (NYSE:VZ), AT&T (NYSE:T), Sprint Nextel (NYSE:S), MetroPCS Communications Inc. (NYSE:PCS) and Leap Wireless International Inc. (Nasdaq:LEAP).

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A synopsis of today's Industry Outlook is presented below. The full article can be read at  

http://www.zacks.com/stock/news/76974/telecom-stock-outlook-june-2012

The telecommunications Industry is identified as a major driver of global economic recovery. An unprecedented growth of high-speed mobile Internet traffic, particularly for wireless data and video, has transformed the industry into the most evolving, inventive and keenly contested industry.

In addition, the emergence of mobile broadband technology has created several new service areas, which potentially offers huge growth potential. This includes IPTV, collaboration and cloud computing, videoconferencing and mobile payment, to name a few. Research firm Ovum recently reported that global revenue of telecom service providers exceeded $1.91 trillion in 2011, an improvement of 6.7% year over year. The momentum is expected to remain high in 2012.

Recent Performance

The U.S. telecommunications industry is witnessing consistent growth despite experiencing a slow moving U.S. economy. This is evident from the stock price movement of the large nationwide carriers. Year to date, the stock price of Verizon Communications (NYSE:VZ) was up 9.64%, the stock price of AT&T (NYSE:T) up 17.04%, and that of Sprint Nextel (NYSE:S) was up 27.35%. However, during the same time period, the benchmark S&P 500 index was marginally up by 3.81%. 

Most of the large national telecom service providers together with the regional prepaid telecom operators generated net subscriber addition in the first quarter of 2012. Verizon Wireless added 501,000 post-paid subscribers out of total net addition of 734,000. AT&T Inc. added a net 187,000 post-paid subscribers out of total net addition of 726,000. Sprint Nextel Corp. gained a net 263,000 postpaid subscribers out of total net addition of 1.1 million. MetroPCS Communications Inc. (NYSE:PCS) and Leap Wireless International Inc. (Nasdaq:LEAP) added net 131,654 and 258,000 wireless subscribers, respectively, in the previous quarter. 

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