NEW YORK—Spending on wireless equipment is in a bit of a slump, according to Bear Stearns & Co. Inc.’s U.S. telecom capex preview.
The firm said Cingular Wireless L.L.C., the nation’s largest carrier, is spending money on third-generation equipment, but those capital expenditures are expected to slow down next year. The company is expected to spend between $7 billion and $7.5 billion this year on equipment.
Meanwhile, said Bear Stearns, Verizon Wireless and Sprint Nextel Corp. are both holding their equipment spending while they wait for CDMA2000 1x EV-DO Revision A technology. Sprint Nextel said it will deploy Rev. A technology by the end of next year.
As for T-Mobile USA Inc., Bear Stearns said the carrier has yet to make significant 3G expenditures. T-Mobile USA has filed to participate in the upcoming spectrum auction, which could give the carrier the spectrum it needs to deploy 3G services.
Bear Stearns said it expects Verizon Wireless, Sprint Nextel and T-Mobile USA to either resume or increase spending later this year or next year.
