Merrill Lynch Identifies Potential Telecom Surprises

Merrill Lynch has identified a list of "potential surprises" that could affect telecom services stocks.

These are events and trends that ML thinks could happen but probably won't -- but if they do, they could have a significant impact on stock values.

Here is the list:

(1) Economic growth slows unexpectedly

(2) U.S. rate hikes lead to substantially higher GEM [I assume this stands for "Growth and Emerging Markets"] debt spreads and lower GEM equity valuations

(3) Data revenue growth reaccelerates

(4) Videoconferencing catches on [Would those of us working in the IP communications space say that this has "low probability," as ML says?]

(5) The long-haul data market stabilizes

(6) "Third pipe" broadband access technologies (fixed wireless and/or BPL) gain momentum

(7) Regulators look for ways to help telcos

(8) Wireless competition turns tough

(9) Smart phones become a mass market product

(10) 3G mobile data applications catch on

AB -- 1/24/05

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January 24, 2005 10:13 AM |