Sector Spotlight: Singing the Wireless Infrastructure Blues

The equipment makers are pushing high-speed third-generation data networks to wireless carriers, but the carriers are dragging their feet.

And as the wireless telecommunications carriers delay their upgrades to the so-called 3G standard, just as their wireline peers are cutting back on their spending, prospects for the wireless equipment makers are dimming along with the fading prospect of revenue-boosting gear sales.

Indeed, Nortel (NT Quote), one of the largest wireless equipment makers, warned of a sharp earnings and revenue shortfall, partly because some telecom carriers are delaying their upgrades by a year, to 2002. Meanwhile, Ericsson (ERICY Quote), the biggest wireless infrastructure outfit of them all, has projected slowing sales growth and profitability for 2001 because it foresees minimal impact from 3G this year. ...