The Communication Services sector was formerly known as the Telecom sector and was redefined in fall 2018. Nowadays, it loosely refers to companies providing communications services, primarily through a fixed-line, cellular, wireless, high bandwidth and/or fiber optic cable networks, as well as to media and entertainment companies that facilitate communication but also have their own content.
The sector includes the following industries:
- Diversified Telecommunication Services
- Interactive Media & Services
- Wireless Telecommunication Services
Companies in the Communications sector are known to generate recurring revenue from consumers. Historically, the sector has shown relatively good performance during the expansion stage, mostly because of its media industry which shows strength during the mid-cycle phase of the business cycle. Yet it’s important to remember that some of the industries are facing rapid change.