Telecom Network Players Poised For Expansion: MF Global

MF Global’s latest impact note assesses the potential and likely trends of the technology sector in 2010. A significant finding is that telecom network suppliers, especially those with a presence in WCDMA/LTE, are well-placed to enter a phase of revenue expansion. Operators are addressing infrastructure shortcomings to handle a hundred-fold increase in peak-time traffic loads.

Network equipment spending will grow well before the mid-year point, thanks to easier financing terms, stronger demand and fierce competition. Ericsson (NASDAQ: ERIC) will benefit from mobile broadband’s emergence.

Emerging markets like Africa, the Middle East, Russia and Latin America will perform better if credit conditions stabilize. The release of the 3G spectrum in India will unleash a wave of investments by suppliers. The rising demand for smartphones in Western Europe could see shifts in the investment appetites of operators.