RE: Will Telecoms be the next star sector?6 Sep 2020 09:21
Fleccy, look at the history to date, from PSTN, ISDN, 2G, 3G and 4G - BT supplied the bit pipes and all of the enabling technology that went with these new innovative connections, while the innovators (eg Google, AWS, FaceBook etc) made all the serious money.
Yes, IoT will be the next enabler but BT will just be the bit pipe that connects the innovators with the users of that enabler. They will have no differentiator, will compete with other bit pipe providers, which will race prices to the bottom
Yes, they are a good cash generating company, but they are not innovators and will have flat revenues for the foreseeable future.
They are still of course cheap but that is more to do with Brexit and value stocks being out of favour currently. They need Brexit out the way and there to be a rotation out of US based growth stocks before their share price will recover.