Chain Reaction

Telecoms will benefit, but airlines will suffer. More S&P opinions on the industries impacted by the Sept. 11 terror attacks

TELECOM SERVICES Craig Shere: S&P is raising the sector to market weight. Wireless, broadband and local exchange carriers are expected to benefit from a growing use of communications services following the attack on the U.S. The role of wireless during attack and recovery is heightening consumer and investor interest. Broadband network providers will increasingly benefit from reduced corporate travel. Baby Bells, independent local carriers are seen as safe havens amid the economic turmoil. We have 5 STARS (buy) rankings on Alltell (AT ), Broadwing (BRW ) and Sprint PCS (PCS ), as well as 4 STARS (accumulate) recommendations on BellSouth (BLS ) and Qwest Communications (Q ).

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