Telecom companies are now investing heavily to upgrade their services for faster deployment of 5G connectivity to meet consumer demand. Increasing digitization in almost every sector, along with the shift toward hybrid work structures, has led to a greater need for efficient telecom services. Because the industry is expected to thrive, we think well-established telecom stocks AT&T (T) and Vodafone (NASDAQ:VOD) should perform well. But which of these stocks is a better choice now? Read more to find out.Dallas, Tex.-based AT&T Inc. (T) provides telecommunication, media, and technology services worldwide. The company operates through Communications; WarnerMedia; and Latin America segments. U.K.-based Vodafone Group Plc (LON:VOD) also provides telecommunication services internationally. The company offers mobile services; fixed-line services, including broadband, television (TV) offerings, and voice; and convergence services.
The demand for telecommunication services and the need for upgrades have increased significantly over the past year with a shift to hybrid work structures and cloud-based solutions. Also, rapid digitization trends worldwide have increased the need for high-speed connectivity.
Telecommunication companies are investing in next-generation communication infrastructures and faster deployment of 5G connectivity to keep up with consumer preferences. Analysts expect the global telecom services market to reach $2.47 trillion by 2028, growing at a 5.4% CAGR. The growing telecom market bodes well for recognized industry leaders T and VOD.