A trio of leading advisors are looking outside the US for opportnity in the telecom sector: Nick Vardy sees potential with Telefonica S.A. (NYSE: TEF), David Fried looks south of the border to Telefonos de Mexico (NYSE: TMX) and Dave Dyer recommends the more diversified Emerging Markets Telecommunications Fund (ASE: ETF).

In his Global Bull Market Alert, Nick Vardy explains, "Spanish telecom group Telefonica S.A. is like a corporate conquistador, exploiting its historical links to expand into Latin America. This new Spanish explorer is reaping rich profits for itself and its shareholders.

"Telefonica's global footprint extends across three continents and 23 countries with a total population of 670 million. This conquistador planted its first flag in Latin America 15 years ago and today is the leading telecom in Brazil, Argentina, Chile and Peru.

"For an organization that is already the fifth-biggest telecom company in the world with close to 207 million customers, Telefonica's profits are still expanding at a breathtaking rate.

"Just recently, Telefonica announced that its third-quarter net profit rose 39% year-on-year. Overall, net profit jumped to €4.02 billion from €2.9 billion a year earlier. Also important to us, Telefonica is a stock that has held up remarkably well despite the recent market jitters, recently hitting a record high. We recommend buying the shares at market."

David Fried, in his The Buyback Letter, adds, "The short story on Telefonos de Mexico is that it has a virtual monopoly in Mexico, has a triple play of services and is a generator of massive free cash flow.

"TMX is the leading telecom company in Mexico, with more than 20 million telephone lines in service and more than 1 million Internet access accounts. Telmex, as it is commonly called, controls more than 95% of Mexico's fixed-line telephone market and is a major provider of long-distance services.

"Telmex was privatized in 1990 and is now majority controlled by billionaire magnate Carlos Slim, the world's third richest man or the world's richest, depending on the source you believe. His son Carlos Slim Domit serves as TelMex's co-chairman, while his nephew, Hector Slim Seade acts as the current CEO.

"Telmex provides total telecommunications services -- local and long distance wire service, wireless communications, multimedia network for video, audio and data, network engineering, digital wireless network access and Internet. TMX repurchased about 10.4% of its shares in the last 12 months."

The Dave Dyer Newsletter suggests, "Sometimes you only need one good insight to make money, and one such ideat, I believe, is the inevitable growth of wireless telecom in developing countries. And you can buy all the leading stocks in this sector at once through the Emerging Markets Telecommunications Fund.

"A good communications system is the backbone for economic growth and the cell phone is the status symbol for the new middle class that comes from that economic growth. While 89% of Europeans and 62% of Americans have cell phones, only 14% of people in India, 30% of people in Latin America, and 35% of people in China do.

"We can expect that gap to close quickly. No one is going to lay old technology land lines when it is faster and less expensive to put in cellular networks. Stocks like Vimplecom, China Mobile, Turkcell, and American Movil are booming.

"They are all high-flyers, but by buying them all through this fund, you can lower the risk of loss from the potential sell off in any one area. Also, I gladly defer to people who understand those foreign markets rather than try to research them myself.

"The closed-end fund has been around since 1992 and has net assets of $233 million. The ETF has averaged better than a 30% annual gain over the past 5 years, with a 60% move over the past year. Despite this great performance, it does not seem to be owned by many institutional investors and is not covered by any analysts. Too bad, they are missing out on a good deal. Buy."

Each day, Steven Halpern's TheStockAdvisors.com website features the latest investment commentary and favorite stock picks of the nation's leading financial newsletter advisors.