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.
