UPDATE 1-S&P, MSCI indexes to combine telecom, media stocks into one sector

(Adds analyst and investor quotes)

Nov 15 (Reuters) - Shares of companies specializing in telecommunications, media and entertainment will be combined into a single sector in a major overhaul of U.S. stock market indexes, including the benchmark S&P 500, S&P Dow Jones Indices and MSCI Inc said on Wednesday.

The move reflects "an evolution in the way we communicate and access entertainment content and other information" and the dramatic integration of these industries through a wave of mergers and acquisitions, the two index companies said in a statement.

The new sector schematic will take affect in late September 2018 and the names of the large-cap companies whose stocks will be impacted by the change will be announced in January, they said.

The index providers did not disclose which companies will be moved. But a list of candidates could include Facebook Inc , Google parent Alphabet Inc, Netflix Inc and Walt Disney Co.

The move marks the second major change in just over a year in how stocks are grouped in the market. In 2016 the index providers split out real estate investment trusts from the financial services sector.

"This is a huge deal," said Todd Rosenbluth, director of ETF and mutual fund research at CFRA.

"Where a stock ends up and who it's compared to can impact where money goes within captial markets."

But Stephen Massocca, senior vice president at Wedbush Securities in San Francisco, said the way index-tracking funds react will be most important.

"The only real implication for serious investors is going to be what kind of impact there is from any kind of particular index fund or fund that's tracking an index, and the ultimate upshot, and that's probably something that would be decided by each management company that has these funds," said Massocca. (Reporting by Dan Burns, Trevor Hunnicutt, Rodrigo Campos and Caroline Valetkevitch in New York; Editing by Sandra Maler and Tom Brown)