Jumping onto the bandwagon, Fitch has issued a warning that the outlook for the global telecom equipment market this year is “negative” due to expectations of lower sales in the handset and infrastructure sector.
While Fitch doesn’t expect to implement a major re-rating of telecom equipment makers, it is concerned about the sector overall given the poor performances at suppliers such as Alcatel-Lucent and Nortel.
“In the case of Nortel, there are questions over its long-term sustainability given the degree to which it has become marginalised in an increasingly global industry,” Fitch said in a press release.
Stuart Reid, senior director with Fitch’s European TMT team, said while credit conditions are not conducive for major deals, it believes more industry consolidation could happen with “the failure or disposal of some parts of these businesses providing scope for the market leaders to increase market position and/or acquire assets at marked down prices.”
Fitch Down on Global Equipment Sector
Jumping onto the bandwagon, Fitch has issued a warning that the outlook for the global telecom equipment market this year is “negative” due to expectations of lower sales in the handset and infrastructure sector.
While Fitch doesn’t expect to implement a major re-rating of telecom equipment makers, it is concerned about the sector overall given the poor performances at suppliers such as Alcatel-Lucent and Nortel.
“In the case of Nortel, there are questions over its long-term sustainability given the degree to which it has become marginalised in an increasingly global industry,” Fitch said in a press release.
Stuart Reid, senior director with Fitch’s European TMT team, said while credit conditions are not conducive for major deals, it believes more industry consolidation could happen with “the failure or disposal of some parts of these businesses providing scope for the market leaders to increase market position and/or acquire assets at marked down prices.”
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