The Sonus (SONS) shortfall -- brutal -- is all about carrier spending and it should give people cause to examine the stocks that are uniquely levered to build out their telephone networks.
Earlier, I thought it was set-top box -- you couldn't tell where it was with the service providers, but that was wrong -- always the problem when the company doesn't explain its shortfall in any coherent way.
But what matters here is that I think the service providers, particularly AT&T (T), are still on hold in spending. This is something that Cisco (CSCO) has been saying for ages, but there are a lot of other companies that don't have a breadth of business away from telco service providers that could be hurt. I am thinking of Juniper (JNPR) and Ciena (CIEN), both of which are constantly rallying on takeover talk.
I wouldn't bite.
Not only that, but to me the way you have to think about a telco buildout is to think towers because both T-Mobile (TMUS) and Sprint (S) need more tower space. I like American Tower (AMT), SBA Communications (SBAC) and Crown Castle (CCI) as all are much better than Sonus. Sorry about the confusion.