In the year prior to Nov. 8, Telefonos' stock price increased by 22.33%. This stock still has good upside potential and it should continue to move higher. Although no company is perfect, TheStreet.com Ratings does not see any significant weaknesses that are likely to detract from the generally positive outlook.

Competition in the industry has intensified over the last decade after the entry of cable companies in the telephone services sector. Declining service prices coupled with the introduction of new technologies to improve the overall service quality are enabling the wireless companies to rapidly add new customers. As a result, wireline companies are losing ground to wireless as well as cable companies.

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