|
Mobile services and emerging markets will be the least affected by the potential fallout of the financial crisis and the expected economic downturn. Wireline problems will likely worsen and new technology development and deployment will be delayed. 
Capital spending by North American mobile network operators grew 4%, fixed spending was flat, and cable MSO capex fell nearly 7% in 3Q08 compared to 3Q07. The biggest reductions came from Sprint Nextel(-$596 million) and Comcast (-$220 million).
Chaos in global financial markets continues. We fear many telcos and vendors will miss opportunities arising from the chaos, and be unready for recovery. While caution is inevitable, we urge a more aggressive strategy for those with cash available.
|
