Telecom Industry Projections
Projection on telecom industry rebound
- 18 to 24 months to return to health but not to pre-2001 levels
- Equipment supplier inventory levels expected to return to ‘normal’ levels by year-end
- Service Provider inventory levels, depending on technology segment, could last into 2003
- Pushing out/curtailing projects that do no have top line impact and do just-in-time spending to improve cost effectiveness (cost per deployed bit)
- Curtailing/cutting projects that are aimed at cost reduction and OPEX unless reductions are large (40-50% savings)
- Service Provider’s end customers return to buying broadband services, business data services and mobile/wireless sales increase
- Impact of the resale of failed carrier’s equipment expected to be limited and not extend beyond the next 18 months