The weak economy is catching up to the telecom industry, analysts said Wednesday, slashing ratings on half a dozen equipment suppliers and an operator.

China Mobile, the world's biggest wireless carrier, will take over Railcom and take in a clutch of executives from smaller rivals as hopes grow that Beijing has embarked on a long-awaited overhaul of the industry.

Nortel Networks posted a bigger first-quarter loss Friday as a series of charges weighed on results, but the telecommunications equipment maker reassured investors that it still expects to meet its full-year targets, which sent its shares higher.

Green Week technology: Mike Zafirovski, chief executive of Nortel Networks, says his firm is playing a key role in the search for cost-effective corporate environmentalism. In an interview with CNBC, Zafirovski described how Nortel is helping corporate customers save energy -- and increasing value for Nortel's own shareholders.

Shares of major semiconductor companies and telecom equipment firms rose Wednesday morning as solid a first-quarter report and outlook from chip maker Intel lifted both sectors.

A big one-time charge was to blame Wednesday as Nortel Networks reported a steeper fourth-quarter loss, and said it planned to slash 2,100 jobs and relocate another 1,000 as the company pushes ahead with its make-over.

Motorola and Nortel Networks are in talks to combine their wireless infrastructure units, the Wall Street Journal reported, quoting people familiar with the situation.