Telecom Mergers Put Increased Pressure on Equipment Vendors

The past few months have seen quite a few majorwith manufacturers. This, combined with a general
mergers shaping up between U.S. communicationsslowdown in wireless spending after the recent 3G
carriers (i.e. Sprint and Nextel, AT&T andnetwork buildout is expected to have a negative long
BellSouth, etc.), which is beginning to pinch the revenueterm effect on the revenues of telecom equipment
of telecom equipment makers. The past few monthsvendors in the U.S., and possibly around the world.
have seen quite a few major mergers shaping upMany analysts have speculated that these
between U.S. communications carriers (i.e. Sprint andmanufacturers, will themselves feel the need to
Nextel, AT&T and BellSouth, etc.), which isconsolidate operations, through aggressive mergers
beginning to pinch the revenue of telecom equipmentand acquisitions. The merger agreement between
makers.Alcatel and Lucent Technologies is proof that this is
As the big wireless and telephone giants consolidatealready beginning to occur, and could have a domino
their operations, they are able to cut costs, integrateeffect on competing companies around the globe.
their network resources, and negotiate better deals(Originally published by TeleClick.