Cramer felt it was a takeover candidate before the VZ spending news and said it was in a sweet spot especially with all of the telecom cap-ex spending;

Had a tough quarter but is rock bottom in terms of value. Tellabs (TLAB) is the spending play for AT&T (T) U-verse roll-out. He likes their "last mile technology" for broadband and terminals.

Just last week Goldman upgraded it to a BUY rating.

Verizon's technology is known to be better than AT&T's when it comes to wireless, Cramer said. Plus, Verizon has a 4.3% dividend, whereas AT&T is yielding 3.7%. Verizon has more of a cushion in case it takes a hit, which shouldn't happen anyway, he said. Verizon's quarter was good, Cramer continued. It increased its wireless customers by 14.5% year-over-year and displayed a No. 1 retention rate. In addition, its fiber-optics service has accelerated revenue growth, he said. FiOS has only been around at Verizon for about five quarters, but it already has a lot of customers.

Cramer said a smaller, more speculative way to play the telco spending cycle is with Alltel (AT). This wireless company has what the "big dogs" want: wireless subscribers, especially in rural areas, Cramer said. In fact, Verizon or AT&T might try to buy Alltel to keep up wireless growth, Cramer said. There aren't that many wireless plays out there, and making acquisitions is the best way for companies such as Verizon, AT&T and Sprint to grow, Cramer said. They all need to keep up their wireless growth "to please people on Wall Street."