Weak economy will impact telecom spending in 2013

Market watchers should temper excitement over rising tech stocks
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As 2013 dawns, a strengthening stock market and improvement of other macroeconomic indicators have many people in the telecom industry believing in a brighter near-term outlook for telecom spending. However, new data from Insight Research suggests that lingering economic weakness on a global basis will impact the telecom industry this year.

Ongoing economic uncertainty in Europe and other global weaknesses, such as high unemployment, are dragging down the industry in general, Insight found. Meanwhile, higher unemployment and ongoing low consumer confidence in the United States also continue to slow a broader recovery in telecom spending, according to Insight.

A modest recovery is in view over the long term, the report suggests, but the key takeaway here appears to be the idea that a telecom industry currently watching tech stocks on the rebound should temper its expectations for any rapid increase in purchase orders and deployment decisions.

Despite the ongoing moodiness, there continues to be market demand for mobile Internet devices and solutions providing greater access to bandwidth. The message for companies looking to sell into this environment may be a familiar one: Help your customers do more with less, at least for now.

For more:
- see this Insight report excerpt (reg. req.)
- this news release
- and this September release

Special Report: Wireline telecom earnings in the fourth quarter of 2012

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