(Satire) Company CFO's haven't confirmed. Adtran's Tom Stanton saw his stock go down -0.73% today while the market went up +1.47%. Scott Belcher, Tom's handpicked TIA chief, issued a press release predicting "a slowdown in capital investment," after the U.S. Net Neutrality order. Stanton is more vulnerable to a U.S. slowdown than any other large telecom vendor because over 60% of his sales are in the U.S. Adtran has done a remarkable job winning a large vectored VDSL contract in Germany in a fierce competition with Alcatel. To grow in Europe, they've had to accept much lower margins than in the U.S., making any U.S. cutback even more painful.
The U.S. is also a crucial market for wireless suppliers Alcatel & Ericsson. Both Verizon and AT&T have covered over 90% of the U.S. with LTE and are slowing down. Any further cutbacks would be particularly painful. Ericsson has just announced 2,000 layoffs and I've lost track of how many people Alcatel has let go. Alcatel and Ericsson are being propped up by a cartel arranged by the EU and China. Each is given about 10% of the Chinese market and Huawei is no longer bidding as aggressively for European contracts. The EU had to threaten huge tariffs to protect these "national champions."Add a comment