Telecommunications, also known as telecom, is the exchange of information over significant distances by electronic means and refers to all types of voice, data and video transmission. This is a broad term that includes a wide range of information transmitting technologies such as telephones (wired and wireless), microwave communications, fiber optics, satellites, radio and television broadcasting, the internet and telegraphs.

The sector’s structure has also changed from a few large players to a more decentralized system with decreased regulation and barriers to entry. Major public corporations act as the service providers, while smaller companies sell and service the equipment, such as routers, switches, and infrastructure, which enable this communication. For growth investors, these companies provide the best opportunities for share price appreciation. In contrast, larger companies tend to be havens for conservative, income-focused investors.

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