News

TTI's "World Network Equipment Industry Recovery 2002 - 2003" is included in the course handbook, 20th Annual Institute on Telecommunications Policy & Regulation, published by the Practicing Law Institute in December, 2002."

Former FCC Chairman Wiley And Former Commissioner Rivera Call TTI's Network Equipment Industry Report "A Comprehensive And Thorough Summary"

"This report constitutes a comprehensive and thorough summary of this [telecom network equipment industry] area," noted former FCC Chairman Richard Wiley and former FCC Commissioner Henry Rivera, who are preparing the handbook for the institute.
Fifty senior telecom executives interviewed in the TTI study, representing 39 of the world's leading telecom service providers, see an industry upturn likely in early 2003, after further downward adjustment and consolidation in the near term. They warn companies to be prepared for an upswing next year.

The executives discussed their capital expenditure plans for the next year or more and offered personal and company perspectives on the industry in recent personal interviews with researchers at Telecommunications & Technologies International, Inc. (TTI), Chevy Chase, MD.

Telecom service providers will spend less on network equipment this year than last, in line with current cost-cutting efforts, TTI's study shows. Internationally, capital expenditure budgets for 2002 are down 11.07% from 2001 for the 29 companies that provided figures for those years. In North America alone, budgets are down 7.65% this year from last. Some companies plan further cuts next year, but capex budgets overall will level off or even increase slightly in 2003, based on 21 companies' budget projections, an increase of slightly less than 2% over 2002.

Companies in the Americas, Asia and Europe participated in the study. Among them were: 360networks, AT&T, Bell Canada Enterprises, BellSouth, BT Group, China Mobile, China Unicorn, Cingular Wireless, CSC, Deutsche Telekorn, Embratel, FOCAL Communications, Hughes Network Systems, Inmarsat, Intelsat, ITXC, Level 3, mmO2, NTT, PCCW Hong Kong, Rogers Communications, SES Americom, Singapore Telecom, Sprint PCS, Telecom Argentina, and Telefonica.

For many companies-service providers, equipment manufacturers, suppliers and software developers alike-the difficult adjustments of the past two years are by no means completed and an important and difficult transition period lies ahead, the study shows.

Emerging from the executive interviews is a portrait of a far-flung industry that is resizing and redefining itself so that it better corresponds to customer requirements and the realities of the marketplace. Among the major developments revealed is the accelerating pace with which three familiar "sleeper" technologies-IP-based voice and data networks; broadband; and third-generation (3G) wireless-are being deployed, quietly revolutionizing telecommunications services and the telecom industry everywhere.

The study highlights the critical role of government in the revitalization of the telecom industry in the U.S. and abroad. When executives were asked to assess factors that could directly affect their capital expenditure budgets over the next two years, more of them pointed to regulatory change than to any other single factor.

Despite their forecast for a difficult 2002, executives interviewed in the study show a uniformly upbeat attitude. As John Barnicle, President and COO of FOCAL Communications, notes, "The companies that have worked through the problems of the past couple of years and uncertainties that still lie ahead are likely to be stronger and better prepared for the future."

"This report puts the future in perspective," says Thomas E. Wheeler, President & CEO of the Cellular Telecommunications & Internet Association (CTIA). David Broecker, recently retired Marketing VP at NEC America, Inc., observes, "The data and observations on applications and drivers are very helpful in thinking about future product directions."

In addition to executives, TTI interviewed government regulatory and policy officials in the U.S. and abroad, and experienced industry observers, for a total of more than 60 individuals in all.

Co-sponsored by the Practicing Law Institute and the Federal Communications Bar Association, the Annual Telecommunications Policy and Regulation Institute and Conference are attended by prominent professionals in the communications bar as well as high level regulators and government officials.

Two recent news stories on telecom resurgence noted Telecommunications & Technologies International, Inc (TTI) and included observations of Richard Thayer.

RegionFocus, a quarterly publication of the Federal Reserve Bank of Richmond, referenced TTI's recent World Network Equipment Industry Recovery 2002 - 2003 study in a cover story on reorganization and renewal of telecommunications in the Fifth District. "Beyond the Turmoil," can be found in the Winter 2003 edition of RegionFocus.

See: http://www.rich.frb.org/pubs/regionfocus/winter03/turmoil.html

"Wrong Numbers for Telecom-Gear Makers," in the February 4, 2003, edition of BusinessWeek online, takes a careful look at business and investment prospects with leading telecom equipment makers, including wioder implications for the industry.
The article includes comments offered by Thayer.

See: http://www.businessweek.com/technology/content/feb2003
/tc2003023_1680.htm

Richard Thayer's article of last January 25, "Cable and Satellite TV Mergers: Who Will Benefit," led to an interview with Thayer by The Philadelphia Inquirer, which was referenced in the following article in The Inquirer on Sunday, November 17, 2002.

Cable industry poised for more mergers
By Akweli Parker
Inquirer Staff Writer

See In Perspective for recent commentaries.