Debt tightness still threatening telecom

Third quarter earnings so far have not painted a terribly ugly picture for the telecom industry. We'll learn more as major carriers report earnings this week, but aside from some obvious caution being taken in near-term outlooks, vendor earning reports during the last week did not show signs that the economic slowdown is halting carrier spending.

As carriers report earnings, they may try to put a positive spin on macro-economic pressures by arguing that more customers will stay at home to watch telco TV or surf telco broadband-accelerated Internet--who knows, maybe a few of them will even pick up that dusty old landline phone to call a friend. Still, industry watchers are preparing for a harsher tightening in carrier spending driven by debt pressure. They argue telcos will have a harder time using various forms of debt to pay for network upgrades.

For more:
- read this story at BusinessWeek

Related articles
Verizon CEO Ivan Seidenberg is optimistic about the financial future
Telco stock analysts have been cutting their price targets

Suggested Articles

On Friday, CenturyLink announced it recently finished up a fiber project that connected 14,000 additional homes, in Boulder, Colo. to gigabit speeds.

SD-WAN could emerge as a prime technology that better enables work-from-home (WFH) and work-from-anywhere (WFA) scenarios for enterprises.

Windstream Enterprise has launched a live, web-based chat feature for its OfficeSuite UC Contact Center Services portfolio.