I Focus no. 57, Equity Analyst Bjørn Schwarz, Sydbank Markets, focuses on the soundness of the telecom sector and particularly the suppliers of telecom equipment.
During the upswing, the debt of the telecom operators grew significantly, and the need to reduce the debt meant that investments had to be cut down. This is gradually paying off, however, the author assesses that the suppliers of telecom equipment will not benefit from this in the near future because the telecom operators are still expected to limit their investments.
Bjørn Schwarz does not expect the market conditions to change until sometime during the second half of 2004 and predicts that the market participants may expect a setback in the region of 10-15% on the market for network equipment.
The situation on the market for mobile phones is brighter, and the market has not been marked by the downturn to the same extent due to services such as exchange of image messages etc. Competition on the market is, however, expected to intensify as Asian players on the market are beginning to make their moves.
Read the article "Difficult market conditions continue to confine the earnings potential for suppliers of mobile telecom equipment " in Focus no. 57 at the Copenhagen Stock Exchange's website www.cse.dk. at the Copenhagen Stock Exchange's website www.cse.dk.
