Article Excerpt:
TWST: Please give us an overview of your coverage.Mr. Church: I cover telecom equipment and data networking companies. I have about a dozen companies under coverage. I focus across various areas within that universe, including access, both wireline and wireless, also metro and core migration to an IP network, as well as enterprise networking.
TWST: In broad terms, what are the key themes driving your coverage
universe?
Mr. Church: In my universe of coverage, there are three key industry
themes. First is the upgrade cycle to increase bandwidth to the end
customer. Second is the drive to offer enhanced services that can expand
revenue and profitability of service providers. Third is the migration
to an all-IP/IMS network for cost savings and speed to market with new
applications. Separate from these drivers, there is the ongoing theme of
consolidation, both among service provider customers and among their
equipment and software suppliers. On the first theme, we are seeing a
migration to fatter pipes, and that means pushing fiber closer to the
customer or deploying broadband wireless. The operators are effectively
pushing bandwidth closer to the customer so that they can offer triple
play services, voice, video, and data, as well as point applications
like music downloads. In my universe of coverage, ECI Telecom (ECIL),
Adtran (ADTN), Alvarion (ALVR), ADC Telecom (ADCT) and Smith Micro
(SMSI) benefit from these access trends.
Tickers included in this excerpt: AAPL, ADCT, ADTN, ALA, ALVR, CHT, CSCO, DT, ECIL, IPTV, MOT, NOK, NT, SMSI, TKLC, VIP, VZ
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