Merger wave could leave telecom gear makers at sea

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Cisco's rival Juniper, which supplies both carriers with IP routers used to build its long-distance IP network.

But Luke said that in either case, the impact will be minimal because neither set of carriers generates massive amounts of revenue for Cisco or Juniper. Overall, though, Luke sees the consolidation in the market as a negative for all IP routing vendors.

"The ongoing merger wave among service providers could result in somewhat lower spending on router purchases from these carriers," he said in a separate research note.

The sunny side of the street
Not every analyst has a negative outlook on prospects for equipment makers, especially in the long term.

"Carriers don't consolidate so they can increase spending," said Erik Suppiger, an analyst with Pacific Growth Equities. "But if they're integrating networks, it may accelerate the migration to an IP infrastructure."

Equipment makers are also looking on the bright side.

"The reasons carriers are consolidating is because they need more compelling services that offer a higher level of security and quality," said Paula Reinman, senior director of corporate marketing at Juniper. "And our platforms enable these kinds of services."