"Western Europe still has a bit of a hangover," said Mats Dahlin, head of Ericsson's European unit, in an interview last week. "Operators are careful because they still have some debt to pay off."
Even a rebound in global economies may not help Ericsson and its rivals, some investors said.
"In telecoms equipment the story isn't good," said Jeff Currington, who helps manage about US$110 billion for Pictet & Cie in London.
The economic recovery "is being outweighed by the downturn in operator spending, and as we saw with Deutsche Telekom, this hasn't run its course."
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