It looks like there's not much left to this market except for high-stakes acquisition fodder.
The telecommunications sector has proved ripe for deals recently. Last week, Alltel, the wireless service provider, has agreed to a $27.5 billion buyout by the Texas Pacific Group and a unit of Goldman Sachs. In turn, Western equipment makers are facing pressure from low-cost Asian manufacturers, as well as the growing size and purchasing power of a few large phone companies.
Last year, Avaya was seen as a hunter, not the hunted, as many analysts suspected that it was a contender to buy the enterprise communications unit from Siemens. But Avaya passed, and Siemens proved unable to sell the business.
Two of the largest telecommunications equipment makers, Alcatel and Lucent Technologies, agreed to merge a year ago in a $11.6 billion deal.