Zacks Industry Outlook Highlights: Telus, Telefonica Brasil, Research In Motion, Polycom and Crown Castle International

   Zacks Industry Outlook Highlights: Telus, Telefonica Brasil, Research In
                Motion, Polycom and Crown Castle International

PR Newswire

CHICAGO, May 31, 2013

CHICAGO, May 31, 2013 /PRNewswire/ --Today, Zacks Equity Research discusses
the U.S. Telecom, including Telus Corp. (NYSE:TU), Telefonica Brasil S.A.
(NYSE:VIV), Research In Motion Ltd. (Nasdaq:BBRY), Polycom Inc. (Nasdaq:PLCM)
and Crown Castle International Corp. (NYSE:CCI).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

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

Link:  http://www.zacks.com/commentary/27516/

OPPORTUNITIES

The telecommunications industry as a whole offers a number of attributes that
are difficult to ignore from the standpoint of investors.

  oTelecommunications is a necessary utility: The need for telecom in both
    rural and urban areas, and its role in the infrastructure of both
    developed and developing markets, will continue to grow. In addition,
    economic stimulus plans in the U.S. and throughout the world should boost
    select service providers and equipment manufacturers.
  oSpectrum Auction: On Sep 28, 2012, the FCC decided to free up spectrum
    currently used by TV broadcasters for commercial wireless networks and to
    deploy a nationwide interoperable public-safety broadband network. Huge
    proliferations of smartphones, tablets, and several other pocket-sized
    mobile devices have significantly increased the demand for bandwidth for
    seamless wireless connectivity. The spectrum auction is expected to shore
    up $15 billion in the U.S. government exchequer.
  oStrong Demand: A recovering economy speeds up the demand for real-time
    voice, data, and video manifold. The FCC has estimated that within the
    next five years, mobile-data demand will grow 25-50 folds from its current
    level. These latest developments are enabling the telecom service
    providers to undertake large network extensions while upgrading plans. The
    companies that match well with the aforementioned considerations include
    Telus Corp. (NYSE:TU), Telefonica Brasil S.A. (NYSE:VIV), Research In
    Motion Ltd. (Nasdaq:BBRY), Polycom Inc. (Nasdaq:PLCM) and Crown Castle
    International Corp. (NYSE:CCI). All these stocks currently have a Zacks
    Rank #2 (Buy).

WEAKNESSES

Generally the telecommunications companies that are under pressure have high
debt levels and large financial leverage ratios or are unable to cope with the
recent market trends. Other risks that remain are as follows:

  oPotential Business Slowdown: Lower overall top-line sales among carriers
    are expected to continue to weigh on capital spending decisions -- a major
    problem faced by equipment vendors. The companies are expected to remain
    focused on improving their balance sheets, financial discipline and free
    cash-flow generation.
  oProduct Overlapping: We may see more product sharing deals between
    telecom, cable TV and satellite TV operators as each of these players are
    trying to get a foothold into each other's territory. Even pay-TV
    services, offerings to business enterprises, and mobile backhaul and
    metro-Ethernet segments may witness more convergence. Mobile phone makers
    are now gradually offering tablets (small laptops); chipset manufacturers
    are offering personal computers and mobile phones are frequently
    interchanging their areas of operations.
  oIncreased Competition: Technological upgrades and breakthroughs have
    resulted in cutthroat price competition. Product life-cycle and
    upgrade-cycle have been reduced drastically as several firms are
    introducing new products and services within a short span of time.
    Increasing competition is forcing every player to offer heterogeneous and
    bundled services.

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