Is There A Way Out Of The Telecom Mess?

from the it-goes-down-before-it-goes-up dept

I don’t think anyone would disagree with the general assessment of the telecom sector being a disaster right now. Fortune is now suggesting that things are only going to get worse before they get better. While some telecom execs and investors are trying to convince themselves that this is the bottom, it’s unlikely to be true. There are still plenty of companies that have been deluding themselves and now have a lot of excess capacity (and incredible debts) to deal with. In the end, a few survivors will certainly appear (who will end up buying up infrastructure from failed telecom companies for pennies on the dollar). One thing Fortune is pretty certain of, though, is that customers will be paying more for telecom services. That’s the only way they figure companies can survive.

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