The telecommunications sector includes companies that manufacture telecommunications equipment, including satellite equipment, fiber optics, switching equipment and microwave equipment. It also includes telecommunications services providers, including local and long-distance phone companies and cable and satellite television companies.

While a combination of factors conspired to hold down the telecommunications market in 2001 and 2002 - slow economic growth, financial problems faced by major carriers, high fees for wireless licenses, excess capacity and diminished corporate profits - Telecommunications Industry Association (TIA) sees the underlying demand for telecommunications remaining strong. Internet traffic continues to grow rapidly; the need at the enterprise level for high-speed data transmission continues to grow; and the demand for mobile connectivity for both voice and data is expanding, according to TIA analysts.

The market outside the United States is expected to grow at 10.1 percent in 2003 to $1.4 trillion, reversing declines during 2001 and 2002, according to the 2003 Telecommunications Market Review and Forecast, an annual publication produced by the TIA. The report speculates that the overall telecommunications market internationally is poised for a healthy 10.3 percent compound average growth rate through 2006. The big drivers for the international market for 2003 are broadband and wireless. Broadband deployment is approaching critical mass in 2003 in many countries around the world, putting the market on an accelerated growth curve. 3G and unlicensed wireless networks also are taking off in 2003 and have the potential to be a driver for the entire global market.

Fenwick & West takes an interdisciplinary approach to client counseling and transaction support. We have an understanding and appreciation for new products and technologies, business model development and planning, structuring strategic business and technology relationships, transactions support in preparing and negotiating business terms and definitive documents, and intellectual property counseling. Our practice supports start-up, emerging growth and mature companies across high technology industries and includes an interdisciplinary Telecommunications Group. For our telecommunications clients we have handled such technologies as DSL; remote email; operating system software; wireless CPE and base stations; ATM; optical networking equipment and network security equipment.

The following companies are representative of Fenwick & West’s telecommunications clients.