Telecom Shares Up as Traders Bet Earnings Will Rebound - Telecoms Roundup

Features Dow Jones Newswires

Shares of telecommunications companies ticked up as traders bet the sector would rebound from a relatively weak earnings season. Verizon Communications warned it won't be able to raise its credit rating as quickly as promised after a major debt-ratings service gave the company less room for error, reflecting the struggles of the broader wireless industry. A recent deal between Oracle and AT&T is a reflection of a shift among major corporations to storing data in software, rather than server form. "AT&T's plan to virtualize 75% of its core network functions by 2020 (55% by end of 2017) helps illustrate the continued shift of large enterprises towards a more software-centric infrastructure," said analysts at brokerage Evercore ISI, in a research note. Australian carrier Telstra rallied after regulators in that nation demurred on a move that would have forced it to share its rural network with other carriers.

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-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

May 05, 2017 16:44 ET (20:44 GMT)