UBS analyst Nikos Theodosopoulos revised his forecast for cuts in U.S. carrier spending next year from a drop of about 5 percent to a steeper decline of 10 percent or more. He said cable TV firms and wireless-related spending might not be as bad, but still would decline by at least 5 percent and 7 percent respectively. Theodosopoulos believes that AT&T specifically may cut wireline spending as much as 10 percent or more in 2009.
Infonetics Research previously said carrier spending worldwide would be down at least 2 percent next year, with 2011 estimated to be the next year of widespread carrier spending growth.
Some telecom companies already have been fortifying themselves for a telecom industry downturn following in the wake of the broader economic downturn. Third quarter earning reports from many companies looked relatively strong, but in recent weeks, a heightened stress level about 2009 could be detected at events like TelcoTV 2008.
- Telephony reports on the UBS forecast
The telecom industry has been awaiting an economic smackdown