Abstract
Post the telecom winter, the U.S. wireline market has slowly crept back to
life. Today, on one hand there are buzz words like IPTV, Video-on-demand,
Wireless Video, and Metro Ethernet. On the other hand is the stark reality
that there is a large deployed base of legacy networks in the U.S. and it is
only AT&T and Verizon that are investing actively. Even the third largest
Incumbent Local Exchange Carrier, Qwest Communications, has had little to no
increase in its CAPEX in 2006. What this really implies is that the lessons
learned from the telecom downturn have not been forgotten and a cautious CAPEX
strategy will be the norm, especially for those service providers that have
deployed legacy network.
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