Telecom Earnings Show Signs of Life

With most of the major telecom companies having reported second quarter earnings, it’s not time to celebrate the end of the recession that has hammered telecom along with the wider tech sector. But there is light at the end of the tunnel.

“While it is far too soon to pop the champagne corks,” reported market research firm TeleGeography, “an icy-cold beer or two might be in order: there are signs that the market is returning to normal.”

Revenues for the top 10 telecom equipment vendors worldwide climbed 4 percent from the first quarter of 2009, to $63 billion, while the top 15 service providers saw combined Q2 revenues essentially flat. Service-provider revenue was up 3 percent, at $231 billion, compared to the same period a year ago.

Top performers included Verizon Communications, which leapfrogged Japan’s NTT to take over second place in the global service provider rankings, and South Korean vendor LG, which “continues a sustained growth spurt” and is now the world’s No. 8 equipment provider with $3.8 billion in revenue.

Finnish mobile device-maker Nokia and Cisco, the U.S. networking giant, remain the world’s top two equipment providers, according to the TeleGeography rankings.

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