INTELLIGENCE FROM THE BROADBAND ECONOMY

CARRIERS RETAIN PESSIMISTIC OUTLOOK

Carriers still aren't seeing much hope in the depressed telecom economy, according to a report published by Sage Research. In its bi-monthly poll of carrier perceptions of the industry, Sage found that few carriers are increasing capital spending this quarter. Far more are committed to decreasing capital expenditures or leaving it at the same level. Not only is network expansion looking bleak, but Sage also found that most carriers have a dismal perception of the current economy and that few expect conditions to improve any time soon.

Carriers bearish on the economy

Sage Research concluded that carriers have a negative outlook of telecom's current economic condition. The firm's current conditions index is at 30.6 out of 100, down 13% from the beginning of the year.

Sage's optimism index dropped 13% since January now that fewer carriers believe the worst of the economy is behind them.

Poll methodology

Sage Research polled 104 service provider professionals from the following carrier sectors:

31%
Internet, Web-hosting and other network service providers

22%
Incumbent carriers

18%
Long-distance carriers and IXCs

16%
Competitive carriers

5%
Application service providers

4%
Wireless operators

4%
MSOs and other cable companies