Telephone and Data Systems (TDS) experienced a 10% increase in its stock price following the discovery of approximately 10 miles of lead-covered cables within its network. This development comes after a recent decline in the stock’s value. TDS shares rose from $7.00 to $7.70 per share.
In addition to TDS, other telecom companies also saw positive movement in their stocks as the sector attempts to bounce back from a series of downgrades by Wall Street analysts. These downgrades were prompted by a Wall Street Journal investigation that revealed the presence of toxic lead in the network cables of various U.S. phone companies.
AT&T, which reached its lowest stock level since 1993, witnessed a 2.2% increase in morning trading. Verizon’s stock rose by 3.7%, while Frontier Communications experienced a 4.7% increase.
TDS addressed the issue in a news release on Monday evening, stating that it is currently determining the next course of action to deal with the limited amount of lead cabling in its network. The company emphasizes its commitment to compliance with all relevant laws in the areas it provides service.
Verizon and AT&T are scheduled to release their quarterly results next week. Analysts believe that these companies will address the issue of lead-covered cables during these announcements.
