The telecom rally took a breather Tuesday as investors continued to weigh the implications of this week's megadeal.AT&T's ( T) $67 billion acquisition of BellSouth ( BLS) isn't due to close until next year,
That's why even the biggest apparent beneficiary of the AT&T/BellSouth deal -- Alcatel ( ALA) -- isn't exactly running a victory lap around the equipment supplier clinic. Alcatel was selected by SBC prior to the AT&T merger to provide $1.7 billion in broadband gear for the company's fiber optic expansion effort. The plan calls for Internet delivery of TV programming as part of a bundle of AT&T services riding on higher bandwidth connections. As it stands now, analysts say it is likely that once the deal is done, AT&T will move the BellSouth networks toward the Alcatel IPTV system. This could eventually edge out current plans by BellSouth, which is using Tellabs and Redback gear. Shares of Alcatel fell 28 cents to $13.87, Tellabs rose a dime to $13.13 and Redback was down 79 cents to $17.61.