has caused a great shock with its profits warning and plans
for 4000 more redundancies from its global workforce.
The company explained the sudden downturn in its sales,
and a likely huge drop in this year's profits, on the recent
auctions of 3rd generation mobile phone licenses.
Marconi said this had meant European governments taking 100
billion dollars out of its major customers. As a result the
finance directors of big telecommunications firms had turned
off the taps of new investment and brought about a high
speed downturn. But Marconi said it was confident this was
just deferred spending as phone traffic was still
rising fast and companies would have to resume investing.
And it's predicted that the world telecommunications industry
will continue to grow for the next ten years and possibly
the next 20.