Telecoms Counter The Doomsayers With Positive Outlook For US Economy

This recovery is expected to translate into business, as 84% believe that their company’s sales will increase by an average of 69% within the next year. Strategis says that even in the current period of downsizing and rapid consolidation in the telecoms sector, sales have continued to grow, although at a slower rate than had been anticipated.

These findings could help to raise the stock value of many telecoms companies which have suffered falling market capitalisation in recent months. As Scott Chase, Strategis Group’s CEO says: “The results of this study should bolster confidence among telecom industry financial investors. Recovery is in sight and the future looks promising.”

However, despite the optimistic outlook for the near-term future, the recent past has clearly taken its toll. Almost two-thirds (63%) of respondents to the survey said that the state of the US economy has negatively affected their business. More worryingly, 81% of the sample indicates that they expect the economy in the US to get worse before it gets better.

Decreases in North American sales reported by 47% of respondents have been offset to some degree by increases in Asia-Pacific sales reported by 46%. Less volatile shifts have occurred in European and Latin American sales and most organisations (62%) have made no noticeable changes to non-domestic operations.

The Telecom Market Index Survey also found that the majority (68%) of telecoms companies expect to increase their marketing and sales expenditures to improve customer exposure.