Uncommon Wisdom

Jul 17 2009   12:00PM GMT

Tier 2 and 3 carriers spend in 2nd quarters



Posted by: Tom Nolle
Tags:
telecom capex
telecom spending

Tier 2 and 3 providers apparently spent more in 2Q than expected, according to a UBS survey. We noted that this class of provider generally did their strategic review earlier this spring than the Tier One carriers did. Tier 2 and 3 companies also tend to have less administrative inertia in making purchases based on budget releases, so that’s logical.

If this is all true, then one might expect that Tier One spending will increase in the third quarter of this year, which would be good news for the industry. There are some signs that Tier Ones are still percolating their new policies, however, and that at best, any 3Q budget spending will be back-loaded.

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