Good News for Nortel

Mike Zafirovski can do all kinds of smart things to re-invent Nortel but it won’t matter much if customers aren’t shopping. Fortunately for Mike Z. and Nortel, Infonetics believes publicly-traded service providers will boost capital expenditures by 4% in 2006 to $65-billion after an 8% increase in 2005. So where is this spending taking place? Infonetics said the three leading aeas are voice (broadband, next-generation voice, wireless networks and IP/MPLS/Ethernet), mobile RAN and optical equipment. Mind you, it’s not all good news for equipment makers. Infonetics said the consolidation among ILECs means 56% of capex is controlled by AT&T and Verizon.

2 Responses to “Good News for Nortel”

  1. Jon Lenton Says:

    True AT&T and Verizon control 56% of US CAPEX. However Nortel and other global providers are just that global. Thus, the desire for Asian deals and heavy focus on China, these countries needs will dwarf the US soon. Also, US Govt is a big spender hence why Bill Owens prusued them.

  2. udayle Says:

    beautiful online information center. greatest work… thanks

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