The new BT and Verizon joint venture, with $4b in annual revenue and an AI-ready global platform planned across 180 countries, puts fresh attention on how telecom stocks might respond to large scale corporate reshaping. For investors, this kind of deal can change cash flows, competition and capital priorities across the sector. This article looks at 3 stocks from our Global Telecommunications Sector screener that appear positively exposed to this news and may help you assess whether they might suit, or not suit, your portfolio goals as the market digests a new phase for international connectivity.

AST SpaceMobile (ASTS)

Overview: AST SpaceMobile is building a space based cellular broadband network using its BlueBird satellites so that ordinary smartphones can connect directly to satellites when they move out of reach of traditional mobile towers. Its SpaceMobile service targets remote consumers, enterprises and government users that need full cellular coverage without buying special satellite devices.

Operations: AST SpaceMobile currently reports all of its US$84.9m revenue from Wireless Communications Equipment in the United States.

Market Cap: US$27.7b

AST SpaceMobile sits at the heart of the BT Verizon joint venture theme because it is trying to solve global coverage gaps for the same mobile network operators that want an AI ready, secure platform across 180 countries. The company has partnered with more than 50 carriers such as AT&T, Verizon and Vodafone, has FCC approval for a large low Earth orbit constellation and is already flying BlueBird satellites with very large arrays designed for direct to device broadband. At the same time, AST SpaceMobile is unprofitable, relies heavily on external funding, has seen shareholder dilution and insider selling, and carries a high P/B multiple. Investors attracted by the growth story and cross border connectivity angle also need to weigh meaningful execution and financial risks that the market is still debating.

AST SpaceMobile’s significant global ambition rests on a fragile financial base, with substantial funding needs and dilution risk. Before deciding where you stand on that trade off, unpack the full 2 key rewards and 4 important warning signs

Sunrise Communications (SNRE.Y)

Overview: Sunrise Communications is a Swiss telecom group that provides mobile, broadband, TV and fixed line services to households and businesses, along with pay TV sports content, cybersecurity tools, device insurance and a range of digital payment and cloud solutions. It reaches customers through several brands, including Sunrise, yallo, Lebara, swype and UPC, and also serves other operators through wholesale and mobile virtual network arrangements.

Market Cap: CHF 3.9b

Sunrise Communications gives you direct exposure to Switzerland’s telecom market while still linking into global data and connectivity trends that sit behind the BT Verizon joint venture. The stock trades well below one popular fair value estimate, even as forecasts point to a shift from losses toward profitability and earnings growth that analysts expect to outpace the wider market, albeit off a weak revenue base. At the same time, Sunrise is still loss making, relies entirely on external borrowings for its liabilities and recently reported a wider quarterly loss despite steady revenue and continued dividends. For investors who can accept near term earnings pressure in exchange for potential longer term improvement, this combination of international exposure and discounted pricing may warrant a closer look.

Sunrise Communications looks like a classic earnings recovery story in a discounted stock, yet the real question is how that shift from losses could reshape the business longer term. Before you decide it is just a value trap or a quiet turnaround, walk through the analyst forecasts for Sunrise Communications and see what might be hiding behind the headline forecasts.

Airtel Africa (LSE:AAF)

Overview: Airtel Africa is a London based telecom group that runs mobile networks and home broadband across Nigeria, East Africa and Francophone Africa, and also operates Airtel Money, a digital wallet offering payments, microloans, savings, insurance and international transfers to tens of millions of customers.

Operations: Airtel Africa generates most of its roughly US$6.4b revenue from mobile services in East Africa, Nigeria and Francophone Africa, with US$2.2b from East Africa Mobile Services, US$1.6b from Nigeria Mobile Services, US$1.6b from Francophone Africa Mobile Services and US$1.4b from Mobile Money, partly offset by group eliminations.

Market Cap: £12.2b

Airtel Africa gives you direct exposure to fast growing mobile and fintech usage across several African regions, with mobile money, data and enterprise services sitting at the center of management’s focus on higher quality earnings and returns. Earnings, margins and return on equity are all currently strong, yet the stock still trades below one popular fair value estimate. An Airtel Money IPO and Bharti Airtel’s move to lift its stake to about 79% underline how important this asset has become. The flip side is meaningful currency, regulatory and funding risk alongside a P/E that is higher than many peers, so the key question is whether Airtel Africa’s growth mix and capital structure justify staying on your watchlist as BT and Verizon reset expectations for global connectivity.

Strong earnings and mobile money growth make Airtel Africa look like a story the market has not fully priced in yet. However, the real test sits inside the 3 key rewards and 1 important warning sign

The three stocks covered here are only a starting point. The full Global Telecommunications Sector screener surfaces 8 more companies with equally compelling telecom narratives that could fit different risk profiles and income or growth goals. Use Simply Wall St to identify, analyze and filter for the specific catalysts and narratives that matter most to you, so you can focus on the highest conviction opportunities in this sector.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.