Tech Sector Is In A Bubble

"We're in a new tech bubble, heading for a crash, just like the dot com bust of 1999," some now argue. After two bubble burses in the first decade of the 21st century (Internet in 2000, housing in 2008), we might be headed for the first bubble burst of the second decade of the 21st century. 


So the question is "what will it mean for the telecom industry?" At the very least, a significant deflation of equity values, which will mean less ability for firms to make acquisitions, raise capital for network investment and otherwise invest in their operations, right at the point that Long Term Evolution network builds are underway. 


That could delay network modernization for a few years, and slow down consumer demand as well. 

The best case scenario is that the tech bubble remains just that: a tech bubble that does not disrupt other market segments too adversely. 

The worse case scenario is that other sectors facing bubble conditions burst synchronously. U.S.farmland is among the sectors ripe for a major crash, for example. 


Some speculate that a massive default wave on student loans could set up the next financial bubble. 

To be sure, most would argue that telecom is relatively immune from bubbles. But telecom is not fully immune. 

The problem with bubbles is that one never knows one is in a bubble until it is over





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