Telecommunication Services Industry Update (S, LVLT, USM, T, VZ)

Analysts at Oppenheimer (NYSE: OPY) have released an update on the Telecommunication Services industry.

According to the update provided by analysts in their report, Sprint Nextel Corporation (NYSE: S) will launch its first Wimax handset in the first-half of this year. Analysts believe that with launch, the company will enter the nascent 4G market. The company has not provided any further details on the launch of the handset, but going by previous reports the handset is expected to be an Android powered touch screen dual-mode. Analysts currently rate Sprint Nextel Corporation as a Perform.

Level 3 Communications (NASDAQ: LVLT) announced that it has expanded its operations, and is enhancing its local presence in South Ohio, according to the Oppenheimer report. The company is growing, and realigning its work force in the area to promote its services to mid-market enterprises. According to analysts, the expansion is consistent with the strategy adopted by the company in mid-2009. The new strategy has led to increased sales from customers in the initial markets as well as higher reported customer service satisfaction for mid-market companies, according to analysts. Level 3 Communications is currently rated as an Underperform by analysts at Oppenheimer.

The Oppenheimer report cites a study undertaken by JD Power & Associates in which it surveyed 24,300 wireless subs on their service during the July-December 2009 period. According to the survey, US Cellular (NYSE: USM) was the top service provider in the North Central region, while AT&, Inc. (NSYE: T) was a laggard in majority of the regions surveyed. According to analysts, AT&T is being hurt by the fact that its voice services are carried on the overwhelmed data networks. Analysts currently rate AT&T as an Outperform.

In other news from the telecommunication services sector, Otelco, Inc. (NASDAQ: OTT) reported results for the fourth-quarter. The company reported results in line with the analysts’ estimate. Analysts continue to rate Otelco, Inc. as a Perform.

Verizon Communications, Inc. (NYSE: VZ) announced that users of select Android-based Verizon Wireless phones will now be able to download a new application that will allow the devices to control its FiOS TV Service. Verizon Communications, Inc. is currently rated as a Perform by analysts at Oppenheimer.

In other major development in the sector, the US Commerce Department’s National Telecommunications, and Information Administration announced 10 grants, which total to about $357 million, for broadband projects that will cover eight states that are under the government’s economic stimulus program.