All eyes were on the Telstra Corporation Ltd (ASX: TLS) share price on Tuesday as it surged 7.77% to $3.19 per share at market close. Fellow communications giant TPG Telecom Ltd's (ASX: TPM) share price also bounced 3.02% higher to $7.17 at the end of trade as it abandoned its 5G network plans after the Federal Government's ban on using Huawei as an equipment supplier.
But while the chatter in the Communication Services sector has been about Telstra and TPG, I've had my eye on the Vocus Group Ltd (ASX: VOC) share price, as it has quietly continued a strong start to 2019.
Vocus' last closing price of $3.33 per share was down 1.48% in a rare day in the red for the telco. Since the start of January, its share price has increased an impressive 8.47% as it has ridden the wave of optimism surrounding the sector.
The numbers are even more impressive if you take out Tuesday's steep moves for the two telco giants, with Friday's closing prices showing year-to-date increases for Vocus, Telstra, and TPG of 10.10%, 6.86% and 10.65%, respectively.
Tuesday's closing price marks Telstra's highest share price since October 2018 as the company tries to stem the bleeding from lower profit margins and a loosening grip on the Australian market in the face of competition from the likes of TPG and NBN Co.
But the unassuming Vocus Group just continues to climb as it stays out of the headlines, and I think it remains well-placed relative to its peers.
Both Telstra and TPG face short-term headwinds, with a likely dividend cut for the former and a likely merger rejection for the latter making me steer clear of both of these stocks in the coming months.
Foolish takeaway
In my view, Vocus remains the growth option in the telecommunications space. Whilst it does face many of the same sector-wide issues including the threat of NBN competition, Vocus announced in late December that it was teaming up with Optus to secure access to the Optus 5G network and future technologies.
I see the latest announcement by TPG as a significant positive for the vertically-integrated Vocus as it continues to strive for greater market share. The company benefits from a nimbler footing within the Communications Services sector, and whilst its lack of dividends may turn away some Fools, I think the potential for growth could be worth sacrificing short-term yield.
