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Telecom Stocks: Go Big Or Go Home

Shares of AT&T (NYSE: [[T]]) and Verizon Communications (NYSE: [[VZ]]) underperformed in 2014, finishing the year in the green but failing to keep pace with the S&P 500. And the conventional wisdom suggests that neither stock will be a big winner in 2015, either.

Media coverage of AT&T and Verizon Communications' fourth-quarter results has focused on the deep discounts that Sprint Corp (NYE: [[S]]) and T-Mobile US (NYSE: [[TMUS]]) have offered to steal customers from the dominant wireless providers.

But this business strategy continues generate more debt than profitability for these pretenders to the throne, while AT&T and Verizon Communications haven't skipped a beat.

AT&T grew its fourth-quarter revenue 4.5 percent from the prior year, excluding the proceeds from the sale of its Connecticut wireline assets to Frontier Communications Corp (NSDQ: [[FTR]]). Meanwhile, earnings excluding one-time items ticked up 3.8 percent.

Wireless revenue climbed 7.7 percent year over year, bolstered… Read More …