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Technology Stocks : p-com (pcms) -- Ignore unavailable to you. Want to Upgrade?

To: bemore who wrote (960)	1/20/1999 9:05:00 PM
From: Elmer Flugum	Read Replies (2) \| Respond to of 1461

From Standard and Poors Monthly Investment Review, Dec. 1998. "The communications equipment industry is dependent on the economic health of it's target markets as well as the pace of capital spending by telecommunications service providers. Recent indications seem to point to a slowdown in the pace of capital spending by incumbent carriers, like the Baby Bells. Similarly, expenditures by emerging, competitive local exchange carriers( CLECs), is likely to be hampered by financial markets. "The CLECs are currently investing heavily in infrastructure and require timely infusions of capital to continue their network buildouts. However, investors have recently shied away from riskier investments, thus affecting the the available capital that the CLECs can spend on equipment. In response to this trend, many equipment suppliers have provided financing to the CLECs. Those equipment vendors with a strong balance sheets that can offer credit at favorable terms could actually see a boost in orders, despite a difficult enviroment. We are more positive long term as increased competition should force local and long distance carriers to increase their capital budgets in order to implement various strategies for entering new markets. Other reasons for optimism include accelerated spending by wireless service providers as cellular carriers move to upgrade their systems to digital technology and increased demand for bandwidth driven by the internet. In developing markets, like Asia and Latin America, telecom infrastructure spending is likely to grow rapidly as these countries exhibit low penetration of residential telephone service and older analog telecommunications systems that have not yet been upgraded to digital service."