Telecom stock

Quick definition

A telecom stock is a public company that makes communication possible. 

Key details

  • Telecom stocks offer phone, internet, and television services through cables or wirelessly. 
  • They provide the technology and build the infrastructure to make global communication possible.  
  • Telecom stocks are traditionally favoured by risk-averse investors seeking dividend income. However recent times has seen a surge in many high growth companies. 

What is Telecom stock?

It’s a stock of a publicly-traded company that operates in the telecommunications industry. This includes businesses that make global communication possible, by providing the services to allow it and the infrastructure to facilitate it. Telecom stocks offer phone, internet, and television services. 

Stocks in the telecom space fall under three categories; telecom services, wireless communication, and telecom equipment. Within the three categories is a number of subcategories including wireless, equipment, processing systems, long-distance carriers, domestic telecom, foreign telecom, and diversified communication services. 

Some of the worlds leading and most famous companies are known as telecom stocks, including BT, Verizon, and AT&T. Traditionally, telecom stocks were the investment of choice for risk-averse dividend seeking investors. However, with the advancement of technology and the internet, a wave of high growth companies have become available. 

Many of the largest telecom stocks still generate the majority of their revenue from telephone calls. However, a change in the industry over the last two decades has seen a shift away from voice and towards video, text, and data. The fastest-growing telecom stocks are generating revenue from services delivered over mobile networks. 

Where can I learn more?

For more information about telecom stocks check out our news page with a dedicated section on the industry. Alternatively visit our learning hub page, where you can learn about the stock market, foreign exchange, and cryptocurrencies.

Fact-checking & references

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Prash Raval
Financial Writer
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a… read more.