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Telco Equipment Spending Decreasing
New approach to business changes the numbers
by KathrynV 02:34PM Sunday Apr 15 2007
Telco companies are expected to spend less money on equipment this year than in prior years, according to a recent press release. Well, kind of … the actual dollar amount spent by telcos will be more than in the past but the percentage increase from year to year will be drastically less. This represents the fact that companies are switching over to focused spending and “pay as you go” growth as opposed to the more immediate-investment plans of the past.

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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Not a Bad Thing

Consider companies like Verizon or AT&T, which are making significant investments in improving service offerings. Once these offerings are in place, the only real expenditures are maintenance and other things related to upkeep.

No business is going to invest all of its money in equipment purchases day after day, month after month or year after year. If anything, companies like Verizon or AT&T are going to sit back and try to make as much money off of their recent investments as possible, before jumping onto the "Next Big Thing."
--
Only SHATNER is Kirk.

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

A little more info on this report...

.... is here:
»www.isuppli.com/news/default.asp?id=7787

tacoma
Bleeding Dodger Blue
Premium
join:2001-05-18
Rancho Cucamonga, CA

1 recommendation

Let me correct the title.

Telco Equipment Spending Increasing, but at a slower rate.

Just like government spending, it never decreases, they just reduce the amount it increases.

JoeyDee
Premium
join:2004-07-23
Las Vegas, NV

"...Spending Decreasing" WTF

This is the kind of headline that makes me crazy. The story says the spending is up but the headline says it's down. Half the folks who glance at the story think the telco's spending is decreasing.

Poor.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

deployment commitments?

Does this mean that the deployment commitments are to be scaled back after these two behemoths got huge incentives such as MONOPOLY power/no reseller (verizon) and deployment/price targets (AT&T)?

Verizon is due to pass 3 million homes per year.. does that mean less will be passed in 2007?
Hmmm.. I smell a rat! I bet I know which areas will get Docsis 3.0 and they align with the Telco BLACK HOLES!
Sammer

join:2005-12-22
Canonsburg, PA

Re: deployment commitments?

No, it means the costs of deploying FTTH are decreasing. It will cost Verizon less to pass another 3 million homes with FiOS this year than it did last year.