GICS RENAMING THE TELECOMMUNICATION SERVICES SECTOR AS COMMUNICATION SERVICES
The Global Industry Classification Standard (GICS has introduced major changes within the Telecommunication Services Sector.
While the Russell universe went through their annual reconstitution on June 22, the more significant 2018 Global Industry Classification Standard (GICS) changes will go into effect as of September 28, 2018. In light of the changes in the telecommunications sector there will be a number of revisions to the GICS® structure which will be implemented after the close of business on Friday.
These changes are designed to reflect the evolution of how people communicate and access entertainment content, among other things. The need for this update became evident as a result of the integration and consolidation among telecommunication, media, and internet companies.
For example, the telecommunications services sector will be broadened and renamed communication services. In addition, media companies will also move from consumer discretionary to communication services. Internet services companies will move from information services to communication services as well. Also, e-commerce companies will move from the information technology sector to the consumer discretionary sector.
Summary of Changes to GICS: The Telecommunication Services Sector is being broadened and renamed as Communication Services to include companies that facilitate communication and offer related content and information through various media. The renamed Sector will include the existing telecommunication companies, as well as companies selected from the Consumer Discretionary Sector currently classified under the Media Industry Group and the Internet & Direct Marketing Retail Sub-Industry, along with select companies currently classified in the Information Technology Sector.