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BT Rumoured to be Slowing 21CN Network Spending

2:05 am on January 7, 2008 | Category: Business, Corporate, Internet, Telecom Services, Telephone

British telecommunications giant, BT, may have recently slowed spending on its 21st Century (21CN) next-generation network initiative, according to Morgan Keegan analyst, Simon Leopold.

â€œOur checks suggest BT has slowed spending recently, and its 21CN project faces delays,â€ Leopold wrote in a research note late last week. â€œWithin its initiatives, it has pushed back â€˜Harmonized Ethernetâ€™ based on demand and network integration issuesâ€¦We think BT has a substantial metro transport network deployed, yet it remains lightly loaded.â€

BT did not comment on Leopold’s speculation, but if the rumours are true, the slowed spending may already be affecting 21CN equipment suppliers such as Ciena, Ericsson, and Adva Optical Networking.

Although BT contributed less than 10% of Ciena’s revenue in its most recent fiscal year, Leopold believes that the UK carrier’s spending may have contributed a greater percentage of Ciena’s sales in the most recent fiscal quarter, which ended in October.

Leopold pointed to Adva’s recent decision to lower its fourth-quarter financial projections due to â€œtemporary uncertainty from (its) largest customers,â€ as evidence that BT may be cutting back on 21CN expenditures.

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