Sprint Nextel Corporation (S), AT&T Inc. (T): How Do These Phone Companies Line Up?

Verizon‘s new program is on the horizon

Verizon Communications Inc. (NYSE:VZ) is another innovative telecommunications company that is worthy of close inspection. The firm recently announced that its new Edge program is official, and this could attract a massive number of new customers. Edge doesn’t require clients to sign a contract, and as with Sprint Nextel Corporation (NYSE:S) carries no activation fees. Furthermore, the company offers a payment plan so that customers can finance their devices.

With the new plan launching at the end of August, now could be a good time to get in before the masses catch on to this new offering. Verizon Communications Inc. (NYSE:VZ) will very likely advertise the new program soon, and that is not only advertisement for people to use the company for its phone plan but also for potential investors who will likely drive up the share price.

Two of these three are more attractive

In the telecommunications business, the company that provides the greatest ease of use for its customers that will come out on top. It isn’t always possible for these firms to offer their service without the fees that customers love to hate, of course. In order for these companies to offer the most competitive prices without activation fees and contracts, they need to have a favorable return on equity.

The moves by Sprint and Verizon Communications Inc. (NYSE:VZ) to make their offerings more attractive by getting rid of fees and contracts tells me these firms are strongly positioned and worthy of consideration for your portfolio. AT&T Inc. (NYSE:T) may have to follow suit once these companies catch up in their ability to deliver high-quality service via an LET network.

The article How Do These Phone Companies Line Up? originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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