The sector has been out of favour.  People want faster growth.  There is pricing pressure on the wireless side and people cutting phone lines.  They are operating in an old world.  There will be winners and losers in the industry.  Their dividend has not been growing quickly.

A better time to own telecoms are in a slowdown; we're now in the late cycle. But some investors like dividends and this is good for that. This stock has moved sideways though, below its 200-day moving average. This sector is
very mature so competition is intense and may pressure their bottom line.

It’s in the process of going through a hearing to conduct a major acquisition. It is going to take a lot of debt to do so. If it is allowed its will be over $200 billion. A significant part of their EBITDA is from their old wire lines business. That is declining rapidly. If interest rates move up rapidly these companies that use leverage and have relatively low growth business could be affected.

The market does not think T-Mobile and Sprint will merge.  There is other competition when it comes to how we communicate.  T-N has to spend a lot of money to upgrade their systems to 5G.  Their dividend coverage is getting less and less.  He prefers T-Mobile.

AT&T vs. Verizon? Verizon is the better-quality company. Both offer good dividends, but Verizon has less debt and a better network. If you want dividend income, go with AT&T. If you want growth, go with Verizon.

A lot is happening in telecoms. Unfortunately, you are fighting a real headwind. The chart shows lower highs and lower lows. There are probably higher rates over time. This name is going to face a wall of sellers, as every time this creeps up a little, more people are going to want to Sell to get their money back. He wouldn't advise anyone to look at this space right now.

As a buy and hold, blue chip, dividend stock, you would not get hurt by this stock.  People need less access to traditional TV now.  A home phone is not all that relevant today.  It will be hard for investors to pay higher valuations for the same kind of earnings.  He thinks there is a risk of the multiple falling slowly over time.

To understand this company, it is worthwhile to look at the whole sector. The ETF (IYZ-N) looks pretty sick. Wire line telecom is not an attractive business. When people are saying the yield is good, that really means the price is dropping. You don’t want to own things that act like bonds in a rising rate environment.