Equipment suppliers dial in to customer risk

Headline: Equipment suppliers dial in to customer riskSource: EuromoneyDate: April 2001Author: Nigel Page Economic and competitive pressures facing telecoms operators in Europe and internationally could, in turn, expose the equipment suppliers to heightened credit and legal risk.         Vendor financing is becoming increasingly important in a cash-strapped telecom sector. It involves telecom […]

Headline: Equipment suppliers dial in to customer risk
Source: Euromoney
Date: April 2001
Author: Nigel Page

Economic and competitive pressures facing telecoms operators in Europe and internationally could, in turn, expose the equipment suppliers to heightened credit and legal risk.

       
Vendor financing is becoming increasingly important in a cash-strapped telecom sector.

It involves telecom equipment suppliers extending credit to their customers, the network operators, thereby assuming their credit risk. Many market participants predict that it will play a big part in the development of third generation (3G) services.








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