Telecoms 2Q03 Shows Some Gain, Says RHK

According to a new study by RHK, some segments in the global telecom industry showed double-digit gain in the second quarter of 2003. Although other segments remained essentially flat, the sharp decline in revenue that had marked previous quarters was finally absent, thereby causing RHK to state that the worst is over."

RHKs findings show that North American capex jumped 24 percent compared to 1Q03, although the overall impact was less impressive due to weaker capex growth in other regions. Among the equipment segments, access sales posted the most gain of 17 percent, with communications semiconductors and optical networking equipment sales showing 8 and 6 percent gain, respectively.

According to John Lively, RHKs Director of Forecasting and Market Analysis, other reasons to feel good about telecom include the new FCC Order offering the prospect of a more stable competitive framework, the recent billion-dollar deals made by Lucent and Nortel with Sprint and Verizon, and growth of the U.S. economy of a 3.1 percent annual rate in 2Q03.

Additional information presented in the report includes the sequential change in quarterly revenues for major industry segments, 1Q03-2Q03.

For more information regarding this report, please contact RHK Client Services at clientservices@RHK.com.

About RHK --
For over 12 years, RHK has been the industry's leader in providing advice, analysis, and research to telecommunications companies. RHK offers continuous research and strategic consulting in the following areas:
·   Technology trends and dynamics
·   Corporate strategy
·   Product and market strategies
·   Network architecture
·   Telecom economics
·   Market intelligence and forecasts
·   Global and regional analysis
RHKs first-class international team offers a rigorous understanding of telecom networks, unbiased analysis, a strategic perspective, and real-world operating experience to meet its clients' business challenges. Visit www.rhk.com, or email info@rhk.com, for more information.