Cingular Cash Could Spark Telco Rally

The AT&T Wireless (AWE Quote) windfall could give the earthbound telecom sector a much-needed lift.

Shareholders of the struggling Redmond, Wash., wireless service provider are about to find $41 billion in their pockets. Rival Cingular is due to complete its all-cash buyout as soon as this week, closing a deal reached in February.

While some investors will surely take their check from Cingular and run, others seem likely to plow the proceeds back into the industry. Big fund managers, looking to maintain their sector weightings, could look to load up on other telecom stocks. That could mean good things for Cingular parents SBC (SBC Quote) and BellSouth (BLS Quote), as well as for wireless rivals Verizon (VZ Quote), Sprint (FON Quote) and Nextel (NXTL Quote). ...