The telecom industry experienced a strong run on the bourse last week as most of the key stocks traded in the green.

U.S. national wireless carrier T-Mobile US Inc.’s (TMUS Quick QuoteTMUS - Free Report) latest promotional plans seem to have heated up the nation’s wireless industry and can pose as a significant threat to telecom behemoth Verizon Communications Inc.’s (VZ Quick QuoteVZ - Free Report) customer base. Effective May 31, 2017, T-Mobile US, the third largest U.S. mobile network operator, has offered to pay the full balance of Verizon customers' (carrying the Google Pixel or Apple’s iPhone 6, SE, 6S or 7) phone leases — up to $1,000 — if they switch to its network.

Small-sized U.S. wireless service provider United States Cellular Corp. (USM Quick QuoteUSM - Free Report) recently submitted an application to the Federal Communications Commission (FCC) for a six-month special temporary authority (STA) to conduct trial runs in the 3.5 GHz band in some areas of Maine and North Carolina.

Major U.S. telecom operators are currently exploring ways to commercialize usage of 3.5 GHz unlicensed wireless spectrum. Verizon is planning to deploy small cells – both low power and high power – using the 3.5 GHz band. T-Mobile US applied to the FCC for an experimental radio license to test 3.5GHz equipment in Washington State. Meanwhile, the FCC awarded AT&T Inc. (T Quick QuoteT - Free Report) a license to test a 3.5GHz networkin Mar 2017. Sprint Corp. (S Quick QuoteS - Free Report) is also likely to jump the bandwagon.

Meanwhile, Qualcomm Inc. (QCOM Quick QuoteQCOM - Free Report) , the largest mobile chipset manufacturer using baseband technology globally, will settle a licensing dispute with BlackBerry Ltd. by paying U.S. $940 million, on or before May 31, 2017. The settlement includes $815 million payment plus interest, attorneys’ fees and net of certain royalties due from BlackBerry for calendar 2016 and the first quarter of calendar 2017. This is in relation to the over-payment by BlackBerry to Qualcomm in royalty payments from 2010 to 2015 under terms of a licensing deal.

Additionally, Qualcomm recently updated one of its lawsuits providing more evidences that Apple Inc. (AAPL Quick QuoteAAPL - Free Report) is interfering with its existing arrangements with the contract manufacturing firms.Notably, in Jan 2017, Qualcomm was slapped with a $1 billion lawsuit related to licensing royalty payments by tech giant Apple. Moreover, through its subsidiary, Qualcomm Technologies Inc., the company unveiled the Qualcomm Mesh Networking Platform.

Regional wireline telecom operator Frontier Communications Corp. is planning to deploy Nokia Corp.’s (NOK Quick QuoteNOK - Free Report) G.fast technology in Connecticut. The technology is aimed to deliver gigabit-speed broadband services to everyone living in apartments and multi-dwelling units (MDUs) throughout the state.

Outside the U.S., as per a recent report by Reuters, Mexican telecom behemoth, America Movil SAB (AMX Quick QuoteAMX - Free Report) is likely to sell its minority stake in the wireless tower company Telesites. Notably, on Dec 2015, Telesites was spun-off from America Movil.The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Read the last Telecom Stock Roundup for May 25, 2017.

Recap of the Week’s Most Important Stories

1.    The latest data plan is one of T-Mobile US’ innovative network expansion methodologies which have always helped it to drive substantial consumer growth. Notably, in the first quarter of 2017, T-Mobile US added 1.142 million total net customers, marking the 16th successive quarter of over one million net customer additions. Several analysts estimate that the company has managed to gain customers from rivals – the other three major U.S. wireless carriers. (Read more: T-Mobile US' Latest Offer Poised to Threat Verizon)

2.    Base station equipment of United States Cellular will be mounted on existing tower facilities of the company to transmit at a maximum EIRP of 47 dBm/10 MHz. The user equipment will transmit at a maximum EIRP of 23 dBm. LTE modulation will be used with up to two 20-MHz carriers within the 3550-3600 MHz spectrum. (Read more: United States Cellular to Test 3.5 GHz Wireless Broadband)

3.    BlackBerry has been making headlines with a number of patent litigations. In the beginning of this year, it filed a lawsuit against Nokia stating that the latter has violated as many as 11 of its patents in offerings to carriers including AT&T and T-Mobile. Last August, it filed a 105-page patent lawsuit against Avaya, which was followed by another suit accusing Blu Products violating 15 of its patents. (Read more: Qualcomm to Settle License Dispute with BlackBerry)

4.    Telecom operators are mainly focusing on increasing their fiber footprint. However, there are areas where fiber networks are yet to reach. Telecom operators look to provide alternate solutions to provide high-speed Internet service through the existing copper networks. G.fast is one such networking protocol that allows higher Internet speeds within a short range of the Incumbent Local Exchange Carrier (ILEC). G.fast is gaining popularity in the copper-wired MDU market. (Read more: Frontier Communications Set to Deploy Nokia's G.fast)

5.    The spin-off of the wireless tower division was a strategic move taken by America Movil to restrict its market share within the 50% limit. The company may also divest some non-core wireless and fixed-line assets in the future in order to comply with the regulatory norms. In 2014, the government of Mexico introduced major reforms within its telecommunications sector where the IFT identified America Movil as the dominant player. (Read more: Is America Movil Considering Divesting Telesites Stake?)

Price Performance

The following table shows the price movement of major telecom players over the past week and last six months.

In the last five trading sessions, share price movement of most of major telecom stocks was positive barring T-Mobile US. Charter Communications (8.49%) and Comcast (4.67%) gained substantially in the same time period.

Likewise, in the last six months, the price performances of most of the major telecom stocks were positive. Among the stocks that gained substantially are Telefonica (36.33%), America Movil (36.12%), Charter Communications (26.78%), T-Mobile US (24.25%), Comcast (19.35%) and DISH Network (13.43%).

What’s Next in the Telecom Space?

We do not expect any significant change in the telecom industry or in the overall global economic factors that might affect the industry in the coming week. Therefore, we expect stocks to trade in line with the broader market movement at least in the near-term. However, U.S. jobs data for May 2017 will be released next week. Investors will closely monitor the figures.

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