Job cuts at AT&T are making headlines -- and rightly so, 12,000 is a big number and the human cost is severe. But the other cuts announced today are important, too: "AT&T plans to reduce its 2009 capital expenditures from 2008 levels."

The knock-on impact: "Shares in network equipment makers, or suppliers to phone companies like AT&T, fell in early trade."

Credit Suisse analyst Chris Larsen estimates capex of $17 billion next year, a 12% dip from 2008.

Not all of this is driven by the economic malaise: "The cuts come as the company struggles with declining landline sales, as many consumers switch to wireless or alternative, cheaper services offered by cable and Internet companies."

Om Malik: "A full-scale recession has hit the telecom sector."