China Moves May Hit Vendors

Reports today of a major shakeout in the Chinese carrier market have left the number crunchers at Lehman Brothers mulling the prospect of a blow to vendor revenues.

According to a report in the South China Morning Post, China’s State Council is considering a plan to merge the country’s four carriers into two larger entities in an effort to resolve the country’s long-delayed 3G licensing program (see Chinese 3G Faces Further Delay).

“If such a merger were to take place, it is likely that spending on telecom equipment would be adversely affected,” note Lehman analysts. “We believe that any reduced spending would likely have a greater impact on wireline equipment, but wireless spending would most likely also suffer.”

Get all the details at Unstrung.

— Justin Springham, Senior Editor, Europe, Unstrung

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