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RESEARH ALERT-Salmon upbeat on telecom equipment
Reuters Story - October 02, 1997 05:27
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HELSINKI, Oct 2 (Reuter) - U.S. investment bank Salomon
Brothers' telecommunications analyst Douglas Smith said in a
note on Thursday that recent trends reinforced the bank's
bullish view on the telecommunications equipment sector.
The note was dated October 2 and titled "Telecom Equipment
in the WorldCom/MCI world," and it said Alcatel,
Ericsson , Lucent, Nokia and Nortel
would gain from recent trends.
A merger of U.S. WorldCom and MCI Corp could have
consequences for telecoms equipment makers, Smith said. WorldCom
on Wednesday bid $30 billion for MCI.
"Other operators are likely to accelerate the upgrading and
modernisation of their telecom networks," he said.
Speed of deployment would be increasingly important and this
would give end-to-end providers a competitive advantage.
"Global operators need global equipment providers, implying
that companies with substantial international operations will
benefit," he said.
"Companies that clearly benefit from these trends are (in
alphabetical order): Alcatel, Ericsson , Lucent, Nokia
and Nortel," he added.
Alcatel, Nortel and Lucent were big suppliers to WorldCom.
"Nokia and Nortel are the companies that have the highest
exposure to new operators, particularly in Europe," Smith said,
adding: "Ericsson probably has the best geographical
distribution of revenues."
--Helsinki newsroom +358-9-680 50 245, newsreuters.fi
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