Is another telecom downturn coming?


Telecom service providers for the most part reported pretty solid fourth quarter earnings, while some equipment makers did well and others just managed to maintain positive numbers. The most common attribute across the board was that most telecom companies are tempering their outlooks for 2008. The upward trend of involuntary customer disconnects could have something to do with it, and more broadly housing market doldrums and ongoing recession fears may keep anyone from being too optimistic. Maybe the lingering effect of service provider and vendor consolidation also is keeping the waters muddy. Is this all forming the recipe for another downturn?

We want to know what you think. Take our brand new poll asking if the telecom industry is headed for another downturn. And, please post any more extensive comments you might have about the financial health of the industry, and the direction in which you think various industry health indicators are pointing.

- Dan

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