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Weaker capex spend by operators in EMEA and the Americas drove a decline in the telecom market

Lower capex in the Americas and EMEA, in comparison to APAC, drove down revenue in 3Q16 for a majority of benchmarked suppliers. Vendors with strong positions in both the North America- and Europe-based LTE markets, such as Ericsson and Nokia, were most impacted, according to TBR’s 3Q16 Telecom Vendor Benchmark. The LTE market shift from coverage to densification in Europe and North America is expected to continue through 2017, indicating revenue declines will persist. To align costs with revenue expectations, suppliers accelerated restructuring and rightsizing initiatives to stabilize margins.

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