Over on Telecom Straight Shooter, Dave Rusin has a fantastic post about how little Wall Street understands the telecom business [1]. I’d call it a rant if his aim weren’t so deadly accurate, it is very much worth reading His sentiment echos some I have received on this blog from readers, such as Anthony’s comment today [2]: many of the depressing macro trends we hear about – gas prices rising, companies looking to cut spending – they tend to benefit telecom, not hurt it.
And lately I’ve been looking for effects of the macro environment on the telecom business, and I have not been finding anything negative at all. Is it time for the market to wake up to the fact that telecom – both equipment and bandwidth – are the real deal? It has taken a very long time to clean up after the bubble, but that cleanup is basically done. The industry is healthy and looking toward a long period of growth – no wild assumptions seem to be required.