Wednesday, March 25, 2015

Hard to Say What is Happening to Global Telecom Capex

It is impossible, yet, to say whether a big forecast revenue miss by Sonus Networks also will affect other suppliers of global telecom infrastructure.

Sonus blamed an expected miss of as much as 32 percent to 36 percent in the first quarter of 2015 on delayed orders and longer decision cycles.

For the first quarter ending March 27, 2015, revenue is now expected to be in the range of $47 million to $50 million compared to previous guidance of $74 million.

Some might expected a bit of a slowdown in global capital spending, as some mobile programs, primarily around fourth generation Long Term Evolution, wound down. But many analysts have been predicting capital investment levels that are flat.

Others have forecast declining capital investment in 2015, however.

It is possible some U.S. carriers are slowing investment because of unfavorable regulatory rulings, but other carriers, in other regions, might have reasons to maintain or even increase investment, especially to support new mobile infrastructure and fixed network Internet access.  

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