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Such a move would hurt equipment makers like Ericsson of Sweden, which has become one of the leading network developers.
That will hurt equipment vendors like Ciena and Alcatel-Lucent since AT&T represents a third of spending on telecoms gear.
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Also, Intels announcement that it will reduce capital investments is likely to hurt semiconductor equipment makers such as Applied Materials amat.
Avaya, formerly part of Lucent Technologies Inc., is trying to increase revenue from the services business after declining sales of phone equipment hurt results.
Cheaper oil has led energy companies to halt orders for pipelines and equipment, hurting manufacturers.
Debt-laden operators are increasingly looking to lower expenses by sharing the networks that will support these new services, a turn of events that will hurt Nokia and other equipment makers.
In March, Xerox reduced its first-quarter earnings forecast by as much as 85percentt, as the slowdown in office equipment spending hurt revenue and thwarted its cost-cutting efforts.
But when capital markets went south, they cut back drastically, which hurt Lucent and other equipment makers.
It was the third straight quarter in which IBM has watched its revenue drop prompting Chief Executive Louis Gerstner once again to pin part of the blame on a Y2K hangover that hurt sales of computing equipment to corporations.
Don't hurt yourself with your equipment.
The collapse in global demand for information-technology equipment is hurting East Asia.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com