Major investments in wireless networks by the major U.S. carriers this year are likely to result in lower wireline capital expenditures, claims a new research note from Jefferies & Co. Inc. Wednesday morning.
According to a research note issued by Jefferies analyst George Notter, wireless spend is "looking good" for the second half of 2012. This should be particularly welcome news for Alcatel-Lucent, believes Notter.
"We note that 2012 could be the first year in recent memory where all of the major wireless operators in North America are all spending aggressively at the same time," Notter writes.
Conversely, operators are tending to pare back wireline spending in favor of funneling their capex budgets towards 4G deployments. Notter says the thresholds for carriers to make wireline investments are "getting higher," causing the Jefferies analyst to "feel incrementally worse about those vendors with wireline exposure ... Adtran and Acme Packet primarily."
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