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Telecom Stock Roundup: Verizon Inks Deal with NFL, Comcast Rolls Out DOCSIS 3.1 Nationwide
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The U.S. telecom industry remained rather subdued last week. Nevertheless, a few developments are worth taking note of.
Verizon Communications Inc. (VZ - Free Report) has inked a five-year digital streaming deal with the National Football League (NFL). The telecom service provider will pay approximately $2.25 billion to stream NFL’s content on its digital and mobile media platforms. Per the deal, Verizon’s digital and mobile media properties will stream in-market and national games, including national pre-season, regular season, playoff games and the Super Bowl nationwide, regardless of mobile network. The deal will enable mobile access to NFL highlights and coverage. The new partnership will be effective January 2018.
Comcast Corp. (CMCSA - Free Report) has started the nationwide rollout of the DOCSIS 3.1 technology, with its latest xFi Advanced Gateway. The company will lease the DOCSIS 3.1-powered, multi-gigabit advanced gateway for $10 a month in nearly 75% of operating area. ARRIS International plc. and Technicolor are the two major DOCSIS 3.1 equipment manufacturers for Comcast.
Charter Communications Inc. (CHTR - Free Report) has settled a year-long pending content licensing dispute with Univision Communications Inc. Per sources, Univision agreed to dismiss the case against Charter. The companies have informed the court about the settlement. However, the terms of the deal have been kept under wraps.
Cincinnati Bell, Inc. is progressing with new business prospects and opportunities. The company reportedly received a 1,100-site wireless tower backhaul contract. The deal enables the company to be the backhaul service provider of almost all the towers in Cincinnati. The telecom service provider confirmed that it has a contract to build 260 sites. Cincinnati Bell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BlackBerry Ltd. (BB - Free Report) and Qualcomm Technologies Inc., a subsidiary of Qualcomm Inc. (QCOM - Free Report) , have announced to collaborate and develop groundbreaking automotive platforms for next-generation connected vehicles. Per the deal, a select few hardware platforms of Qualcomm Technologies will be optimized with BlackBerry's QNX software for use in virtual cockpit controllers, telematics, eCall and Cellular Vehicle-to-Everything technology, etc.
1. Verizon has been a major NFL partner, both in the distribution of games on NFL mobile and as a sponsor, since 2010. Currently, the company has mobile streaming rights to NFL’s Sunday day games, along with night games on Monday, Thursday and Sunday. Verizon’s FiOS TV customers already have access to games on their screens at home, owing to networks like ESPN and NBC. The NFL content will attract a massive digital audience. (Read more: Verizon Inks Multi-Year Digital Streaming Deal With NFL)
2. Comcast has been extensively deploying DOCSIS 3.1 network in several markets in the United States. The company has offered 1 Gbps downstream and 35 Mbps upstream speeds for DOCSIS 3.1 network. Comcast Business launched DOCSIS 3.1-based internet service to business customers in the Northeastern and Mid-Atlantic United States including Greater Boston, Greater Philadelphia, New Jersey, northern Delaware as well as in Baltimore, Charlottesville and Washington. (Read more: Comcast Initiates Nationwide Rollout of DOCSIS 3.1 Gateway)
3. In July 2016, Univision sued Charter Communications over carriage licensing fees, post the twin buyout of Time Warner Cable and Bright House LLC to become the second largest cable mult-service operator (MSO) in the United States. The parties were in conflict over if Time Warner’s long-term deal with Univision was applicable to the merged entity. (Read more: Charter Communications-Univision Settle Licensing Dispute)
4. Cincinnati Bell is also eyeing business opportunities with wireless backhaul and small-cell expansion in Hawaii. The company is also planning to expand fiber foothold in Hawaii. Notably, Cincinnati Bell recently received the conditional approval from the Hawaii Department of Commerce and Consumer Affairs' (DCCA) Cable Television Division (CATV) for the buyout of Hawaiian Telecom Holdco, Inc. This marks a major progress in the deal closure process. (Read more: Cincinnati Bell Receives Wireless Backhaul Contract)
5. BlackBerry and Qualcomm Technologies have been partners for more than a decade. Earlier this year, BlackBerry received $940 million from Qualcomm in a patent-related dispute. BlackBerry has been making continued efforts to expand its footprint. To this end, it has inked several deals of late. On a positive note, BlackBerry is entitled to receive royalties from watchmaker Timex, courtesy of its contract with the latter. Also, it signed an agreement with Appdome, the first cloud hub for mobile app integration. (Read more: BlackBerry-Qualcomm Partnership to Tap Automotive Market)
Price Performance
The following table shows the price movement of the major telecom stocks in both the last week and last six months.
Company
Last Week
Last 6 Months
VZ
3.28%
13.84%
T
4.30%
-1.65%
TMUS
4.81%
-0.28%
S
-4.69%
-31.11%
TEF
-4.11%
-11.22%
AMX
2.52%
8.53%
CMCSA
0.39%
-6.40%
CHTR
-2.16%
-3.75%
DISH
-2.64%
-25.82%
In the last five trading sessions, share price movement of most of the major telecom stocks witnessed a mixed trend. While, Verizon, AT&T and T-Mobile US gained significantly, Sprint and Telefonica lost substantially, in the same time frame. On the other hand, price performances of most of the major telecom stocks were negative in the last six months. Sprint, DISH Network and Telefonica suffered major reverses in the stock price while Verizon gained attractively in the same time period.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Image: Bigstock
Telecom Stock Roundup: Verizon Inks Deal with NFL, Comcast Rolls Out DOCSIS 3.1 Nationwide
The U.S. telecom industry remained rather subdued last week. Nevertheless, a few developments are worth taking note of.
Verizon Communications Inc. (VZ - Free Report) has inked a five-year digital streaming deal with the National Football League (NFL). The telecom service provider will pay approximately $2.25 billion to stream NFL’s content on its digital and mobile media platforms. Per the deal, Verizon’s digital and mobile media properties will stream in-market and national games, including national pre-season, regular season, playoff games and the Super Bowl nationwide, regardless of mobile network. The deal will enable mobile access to NFL highlights and coverage. The new partnership will be effective January 2018.
Comcast Corp. (CMCSA - Free Report) has started the nationwide rollout of the DOCSIS 3.1 technology, with its latest xFi Advanced Gateway. The company will lease the DOCSIS 3.1-powered, multi-gigabit advanced gateway for $10 a month in nearly 75% of operating area. ARRIS International plc. and Technicolor are the two major DOCSIS 3.1 equipment manufacturers for Comcast.
Charter Communications Inc. (CHTR - Free Report) has settled a year-long pending content licensing dispute with Univision Communications Inc. Per sources, Univision agreed to dismiss the case against Charter. The companies have informed the court about the settlement. However, the terms of the deal have been kept under wraps.
Cincinnati Bell, Inc. is progressing with new business prospects and opportunities. The company reportedly received a 1,100-site wireless tower backhaul contract. The deal enables the company to be the backhaul service provider of almost all the towers in Cincinnati. The telecom service provider confirmed that it has a contract to build 260 sites. Cincinnati Bell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BlackBerry Ltd. (BB - Free Report) and Qualcomm Technologies Inc., a subsidiary of Qualcomm Inc. (QCOM - Free Report) , have announced to collaborate and develop groundbreaking automotive platforms for next-generation connected vehicles. Per the deal, a select few hardware platforms of Qualcomm Technologies will be optimized with BlackBerry's QNX software for use in virtual cockpit controllers, telematics, eCall and Cellular Vehicle-to-Everything technology, etc.
Read the last Telecom Stock Roundup for Dec 08, 2017.
Recap of the Week’s Most Important Stories
1. Verizon has been a major NFL partner, both in the distribution of games on NFL mobile and as a sponsor, since 2010. Currently, the company has mobile streaming rights to NFL’s Sunday day games, along with night games on Monday, Thursday and Sunday. Verizon’s FiOS TV customers already have access to games on their screens at home, owing to networks like ESPN and NBC. The NFL content will attract a massive digital audience. (Read more: Verizon Inks Multi-Year Digital Streaming Deal With NFL)
2. Comcast has been extensively deploying DOCSIS 3.1 network in several markets in the United States. The company has offered 1 Gbps downstream and 35 Mbps upstream speeds for DOCSIS 3.1 network. Comcast Business launched DOCSIS 3.1-based internet service to business customers in the Northeastern and Mid-Atlantic United States including Greater Boston, Greater Philadelphia, New Jersey, northern Delaware as well as in Baltimore, Charlottesville and Washington. (Read more: Comcast Initiates Nationwide Rollout of DOCSIS 3.1 Gateway)
3. In July 2016, Univision sued Charter Communications over carriage licensing fees, post the twin buyout of Time Warner Cable and Bright House LLC to become the second largest cable mult-service operator (MSO) in the United States. The parties were in conflict over if Time Warner’s long-term deal with Univision was applicable to the merged entity. (Read more: Charter Communications-Univision Settle Licensing Dispute)
4. Cincinnati Bell is also eyeing business opportunities with wireless backhaul and small-cell expansion in Hawaii. The company is also planning to expand fiber foothold in Hawaii. Notably, Cincinnati Bell recently received the conditional approval from the Hawaii Department of Commerce and Consumer Affairs' (DCCA) Cable Television Division (CATV) for the buyout of Hawaiian Telecom Holdco, Inc. This marks a major progress in the deal closure process. (Read more: Cincinnati Bell Receives Wireless Backhaul Contract)
5. BlackBerry and Qualcomm Technologies have been partners for more than a decade. Earlier this year, BlackBerry received $940 million from Qualcomm in a patent-related dispute. BlackBerry has been making continued efforts to expand its footprint. To this end, it has inked several deals of late. On a positive note, BlackBerry is entitled to receive royalties from watchmaker Timex, courtesy of its contract with the latter. Also, it signed an agreement with Appdome, the first cloud hub for mobile app integration. (Read more: BlackBerry-Qualcomm Partnership to Tap Automotive Market)
Price Performance
The following table shows the price movement of the major telecom stocks in both the last week and last six months.
In the last five trading sessions, share price movement of most of the major telecom stocks witnessed a mixed trend. While, Verizon, AT&T and T-Mobile US gained significantly, Sprint and Telefonica lost substantially, in the same time frame. On the other hand, price performances of most of the major telecom stocks were negative in the last six months. Sprint, DISH Network and Telefonica suffered major reverses in the stock price while Verizon gained attractively in the same time period.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>