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Telecom mergers rein in growth for U.S. network gear makers

09
Sep
2014

Telecom giants ATT Inc and Sprint Corp are taking time to decide whether to upgrade existing wired networks or roll out 4G networks, forcing gear makers to cut expectations for what is usually the stronger half of their year. Ciena Corp and Finisar Corp last week joined their peers in forecasting a weak current quarter, citing delays on closing sales to customers in North America. ATT is set to buy DirecTV for $48.5 billion and Deutsche Telekom AG is seeking buyers for T-Mobile US Inc after the collapse of a sale to Sprint – which itself was bought last year by Japan’s Softbank Corp. “When deals get done, when operators come together, typically the vendors experience a pause,” said Simon Leopold, analyst at Raymond James.

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