Tuesday, November 04, 2008
Credit crisis affects smaller telecoms, threatening competition, broadband in more remote areas
While large cable companies raise prices and seem to be doing all right during the credit crisis, smaller competitors may be floundering. Cecilia Kang has an important story on p D1 Business in The Washington Post on Monday Nov. 3, “For Telecoms: Some Signals of Distress: Credit Crisis Squeezes Smaller Firms”, link here.
Some of the smaller companies mentioned are Ciena, Cogent, and XO Communications. On page D4, the Business Section of Monday’s paper gives separate stories about Ciena, Cogent, XO, and Sprint Nextel.
Both presidential candidates have mentioned the need to improve broadband and other communications services in remote and lower population density areas throughout the country.
Update: Nov. 10
Reuters has a story by Caroline Humer and Anupreeta Das about small technology companies that were over-leveraged before the financial crisis, "Tech sector may be next in restructuring wave," link here.