NEW YORK ( TheStreet) -- The following companies from the telecom industry based out of countries like China, France, Russia and the U.K. have strong potential upsides, based on quarterly results reported or soon to be released. Moreover, some of these companies generate attractive dividend yields.

A Research and Market report on Telecom 2011 says there are more than 5 billion global mobile subscribers, compared to less than 500 million subscribers in 1999. China and India offer huge potential for growth, driven by desirable demographics and the interest shown by large carriers and private investors.

With emerging markets at the forefront, global mobile growth is forecast robust, with AT&T ( T - Get Report), NTT DoCoMo ( DCM and Verizon Communications ( VZ - Get Report) the top three global carriers in terms of sales.

Analysts expect these six telecom stocks to generate 10% to 49% upside over the next 12 months. These stocks have an average buy rating of 57% and zero sell rating. The dividend yield for these stocks ranges from 2% to 10%.

The stocks are stacked based on upside, great to greatest.

6. France Telecom ( FTE offers fixed and mobile telephony, data transmission, Internet and multimedia, and other value-added services for individuals, businesses and telecommunications operators. Broadly, the telco structures its operations into three segments: Personal Communication Services (PCS), Home Communication Services (HCS) and Enterprise Communication Service (ECS).

On June 15, 2011, France Telecom paid its interim dividend of $1.14 per share, completing its full dividend payment of $2 per share for fiscal 2010. Currently, the company has a strong dividend yield of 9.55%.

For the first half of 2011, FTE's customer base swelled 7%, led by a 23% increase in mobile services in Africa and the Middle East. As of June 30, 2011, it had customers stood at 217.3 million customers at a 9.2% growth rate. Consolidated revenue improved 1.3% to $32.47 billion from the year-ago period. For 2011, the company is targeting operating cash flow of $12.8 billion with a commitment to pay a dividend of $2 for the year.

The company recently said that it plans to launch a low-cost mobile brand called Sosh for smartphone users, primarily to address the social networking phenomenon more effectively. Sosh essentially targets young people and will be sold only on the web with no fixed contracts. Fitch Ratings has affirmed FTE's long-term issuer default rating and senior unsecured rating at A- with a stable outlook, citing the company's lead position in the domestic market.

Of the two analysts covering the stock, 50% recommend a buy and the rest rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg see the stock gaining an average 9.9% to $21.70 in the next 12 months.

5. China Telecom ( CHA - Get Report) is an integrated information services provider in China offering a range of telecommunications services, including wireline voice services, mobile voice services, Internet access services, value-added services, integrated information application services, managed data and leased line services and others.

On July 11, the company recorded a gross dividend of $1.09 per share with a net dividend payout of 98.3 cents per share to shareholders. Currently, CHA has a dividend yield of 2.1%.

China Telecom disclosed that it had 108.37 mobile subscribers in June, an increase of 2.67 million from the previous month and by 17.85 million from June 2010. This figure includes 21.54 million 3G subscribers, an increase of 1.87 million month-on-month and 9.25 million year over year.

Industry sources report that the telecom operator has reached an agreement with Apple ( AAPL to launch the CDMA version of the iPhone in China by 2012 latest, or as early as October 2011. Separately, Ticonderoga Securities estimates that China Telecom has 13 to 15 million high-end subscribers with majority of them being CDMA users. The research firm says that if Apple launches the iPhone in November, it could generate an $8 billion to $9 billion near-term revenue opportunity.

Of the 5 analysts covering the stock, 60% suggest a buy and the rest rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 10.3% to $70.75 in the upcoming 12 months.

4. China Mobile ( CHL engages in providing a range of mobile telecommunications services in 31 provinces, autonomous regions and directly-administered municipalities in China and in the Hong Kong Special Administrative Region of China.

With its businesses consisting of voice and value-added services, the company offers mobile telecommunications services using the Global System for Mobile Communications (GSM). With a dividend yield of 3.96%, the company has a dividend payout ratio of 43.31%.

China Mobile has established its payment company China Mobile E-commerce with a registered capital base of $77.7 million. China Mobile Group Hunan is the sole shareholder of the e-commerce company. Recently, China Mobile E-commerce applied for the license of payment business. China Mobile recently slashed its international roaming fees by as much as 80% to maintain user loyalty. The cut will help the company retain mid-to high-end customers and will prove beneficial for long-term profitability.

The company's user base swelled by 5.62 million in June 2011, taking total subscribers to 616.8 million at the end of the month. On a year-over-year basis, subscribers increased 32.8 million. Meanwhile, 3G subscribers grew 3.03 million to 35.03 million at the end of the month.

Mobile Market, the company's online application store, reported 70,000 applications and more than two million developers at the end of June 2011. Also, the number of registered users topped 80 million, while cumulative downloads exceeded 360 million.

Of the 5 analysts covering the stock, 40% recommend a buy and the rest rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 12.1% to $54.63 in the upcoming 12 months.

3. Vodafone Group ( VOD, a global mobile communications company, offers a range of services including voice, messaging, data and fixed-line solutions and handsets. The company has equity interests in over 30 countries and over 40 partner markets worldwide. Vodafone operates in Europe, Africa, Central Europe, Asia-Pacific and the Middle East. In the U.S., the group has investments in Verizon Wireless ( VZ - Get Report).

Vodafone recently announced that the board of Verizon Wireless has approved the payment of a $10 billion dividend. With a 45% stake in Verizon, Vodafone will be eligible for a dividend of $4.5 billion, payable Jan. 31, 2012. Vodafone intends to pay special dividend of $2.85 billion to shareholders in February 2012. Currently, VOD has a dividend yield of 5.04%.

The group's revenue totaled $19.09 billion at the end of the June 2011 quarter, for a 3.5% year-over-year growth. Service revenue rose 2.6% during the same period, while group data revenue grew 24.5%. Driven by broadband subscriber accretion, fixed-line services revenue increased 8.7% to $1.47 billion. The company has invested $1.97 billion with the majority for deployment of the 4G long-term evolution network in Germany and network improvement in Vodacom.

Recently, the company launched Vodafone 555 Blue -- the world's first designated prepay phone -- designed to put the Facebook experience into the heart of the handset. For fiscal 2012, the company estimates adjusted operating profit in the range of $15.7 to $16.8 billion and free cash flow of $8.6 to $9.3 billion.

Of the 6 analysts covering the stock, 67% recommend a buy and the rest rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg see the stock gaining an average 21.1% to $33.30 in the upcoming 12 months.

2. Mobile TeleSystems ( MBT - Get Report) is a leading telecommunications group in Russia, offering mobile and fixed voice and data services, including transmission, broadband, pay-television, a host of value-added services, as well as distribution equipment and accessories. The company operates through subsidiaries and affiliates.

With a dividend yield of 5.8%, MBT has a five-year dividend growth rate of 99.1%. For fiscal 2010, the company's dividend as a percentage of net income stood at 78% with a dividend amount of 52 cents per share.

According to market research group AC & M, mobile phone subscriptions in Russia increased to 222.7 million in June, a penetration rate of 153.4%. Total mobile phone users grew 0.6 million in June from the prior month. As of June 30, 2011, MTS had the highest market share of 31.9% in Russia, and 37.6% and 29.5% in Moscow and St. Petersburg, respectively. For other regions, the company's market share stood at 30.9%, ahead of its Russian counterparts.

For the first quarter 2011, the group's revenue was up 12% year over year to $2.93 billion, led by subscriber additions, growth in data traffic and handset revenue. Cash and cash equivalents stood at $1.19 billion as compared to $927.7 million for the December quarter. Average Revenue Per User (ARPU) for mobile business was $8.3 during the quarter vs. $7.9 in the comparable quarter prior year. Churn rate for the quarter decreased to 12% from 13.2% in fourth quarter 2010.

Of the 23 analysts covering the stock, 74% recommend a buy and the rest rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg see the stock gaining an average 40.2% to $25.48 in the upcoming 12 months.

1. Telecom Italia ( TI - Get Report), a telecommunication services provider in Italy, offers fixed and mobile telephony, Internet, media and news services through fixed and mobile telephones, personal computers and television terminals. The company divides its operations into: Domestic Business, Brazil Business, Argentina Business, Media Business Unit, Olivetti Business Unit and Other operations. Telefonica owns almost 10% of TI.

Telecom Italia has a strong dividend yield of 7.16% with a dividend payout of 37.84% during the past 12 months, starting mid-July.

Telecom Italia Media reported that net loss for the first half of 2011 narrowed to $23.4 million from $31.8 million in the same period prior year as it seeks to boost its company value driven from high interest from international groups. Net financial debt, during the first half 2011 which stood at $207 million, is likely to expand further as the company has planned investments.

During the final week of July, TI completed the acquisition of a 71% stake in 4G Holding for $12 million through wholly owned subsidiary TLC Commercial Services. With this acquisition and 200 sales points of 4GH in Italian shopping malls, Telecom Italia will enhance its positioning among specialist retailers of telephone devices.

Of the two analysts covering the stock, 50% recommend a buy and the remaining suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg see the stock gaining an average 49.2% to $17.41 over the next 12 months.

>>To see these stocks in action, visit the 6 Telecom Stocks to Watch portfolio on Stockpickr.