JDS Uniphase (JDSU)

[AV8R]

COMING OUT OF THE DESERT

Mobile operators are increasing spending on their networks after several years of underinvestments when they were ridding their balance sheets of huge debts left over from expensive takeovers and acquiring licenses to run fast third generation (3G) networks for mobile multimedia services.

"(The) improved outlook is mainly driven by growing traffic, network expansions and continued 3G rollout. There is also an element of operators catching up on previous years' limited investments," Ericsson said.

The Telecoms must invest to give them a chance in the VOIP race. This will help the telecom equipment supplier including CSCO, JDSU, GLW etc.