Phone Suppliers Staying Single

And while Cisco has had a disappointing journey into telecom's wireline side, some observers say a wireless networking acquisition like Lucent or Nokia would make sense.

Still, there are imperfections to the matchmaking. The idea of adding an overseas operation like Nokia's is daunting, say analysts. And Lucent is saddled with a declining phone switch business that may scare off many potential suitors. Similarly, Nortel's dreary old-line telecom unit and bizarre "bonusgate" keep it in the damaged-goods bin, say analysts.

Ultimately, say analysts, if mutual attraction won't drive merger deals, desperation will.