Cable firms pose threat to encumbent operators

Fund managers are moderately confident on the US telecoms sector, although some believe increasing c...

Fund managers are moderately confident on the US telecoms sector, although some believe increasing competition from cable companies poses a threat to core businesses. Over the 12 months to 9 September 2004, the Nasdaq telecoms sub-sector gained 7.25% in US dollar terms. Antony Gifford, portfolio manager on the North American desk at Henderson Global Investors, says: "Large-cap telecoms look attractive on a valuation and yield basis relative to the rest of the market. "The regulatory framework seems to be going back in favour of the big three companies, Verizon, SBC and Bell South, part...