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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: PaperChase who wrote (3395)	5/30/2001 9:00:02 AM
From: elmatador	Respond to of 3891

It is a buyers market. There is overcapacity in the telecom industry. Vendors are reluctant to merge and everyone is vying for the same business. Operators relax and buy only if the vendor pays for the equipment. Operators have been taking their cash and went to buy licenses to build new networks in far-flung places -yes you guessed- with vendor financing again. The only winners were governments that sell licenses. This is about to change: Operators are being pressed to get rid of their foreign assets -KPN, Swisscom etc to cut down debts. Is this or having their credit rating cut. Big telecom vendors will consolidate. Alcatel and Lucent is just the beginning. Vendor financing will still be part of the deals, but won't be the deal as it is now.