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Remember the Telecom Bust?


When I moved down to Philadelphia in late 2001, the telecom market was on its way down. Way down. In 2007, however, iSuppli reports that telecom spending is up. Way up. Telecom companies are expected to spend nearly $41 billion on equipment this year. The annual jump from 2006 isn’t very high, only 1.6%, but spending rates rose 10.7% in 2006 and 8.3% in 2005.

The increased spending must come in no small part thanks to Verizon’s fiber deployments. Add to that new TV services from both Verizon and AT&T, and the skyrocketing popularity of AT&T’s DSL, and you’ve got a sense of why telecom spending is so high. And that’s not even taking wireless services into account!

The spending, however, does seem to be paying off. AT&T had a great quarter, and we’ll get a close look at Verizon’s financials in next week’s earnings call. More on the earnings season to come. Don’t forget to tune in to the Comcast call tomorrow morning.

One Response

  1. […] wonder telecom spending is up. The Organisation for Economic Co-operation and Development (OECD) reports that the proportion of […]

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