Hints of the Sky Not Falling

At the Citi Global Entertainment, Media & Telecommunications conference this week, many carriers and service providers have been giving presentations.  And while most have done so cautiously and without disclosing much about the fourth quarter, there have been a few tidbits of information.  And those tidbits have not indicated that the sky is falling, yet anyway.

q filed an 8-K with the SEC stating:

In the fourth quarter of 2008, each of Qwest’s business units performed in line with operating expectations and maintained disciplined cost controls. Enterprise service revenues, access line trends and demand for broadband services were generally consistent with third quarter performance.

Now Qwest’s Q3 wasn’t awesome, but it wasn’t horrible either relative to the economy, and it was right at the end of Q3 that the economy went south.  If the sector was collapsing, Q4 ought to have been terrible.

glbc was fairly talkative, indicating that demand remains very solid.  Carrier and wholesale purchases especially so, a reduction in self builds goes with the capex reductions that is hurting equipment companies.  They said they still stand by their 2008 guidance as well.  In fact, their comments were quite positive, acknowledging the economy and credit markets were difficult, but that it just isn’t hurting them too much yet.  It will be a while before we get the real numbers though, likely in early March.

I haven’t listened to everyone though, I have been both busy and slowed by a head cold.  Any other good news out there in the sector?  Bad news?  Later today we hear from Level 3 Communications (NYSE:LVLT, news, filings) and from Internap Network Services (NASDAQ:INAP, news, filings) amongst others.  Hopefully no meteorites will land.

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Categories: Financials · Internet Backbones