B.G., A telecom can play a role in NAZ recovery and WCOM can be a star soon.
The reasoning behind this skewing of supply and demand rests on an intertwined economic expansion and telecommunications revolution. The United States is currently experiencing the longest economic expansion in its history. This expansion is being driven by low inflation, a comparatively stable domestic and international climate (e.g. no major wars), an improving international economic climate - particularly in developed countries, and a fundamental shift in the ways corporations operate. Today corporations operate with leaner staffs, have better inventory management, outsource more, increasingly compete on an international scale, and rely more heavily on information technology than they did in the past.
The expanding reliance of corporations on information technology is a key point because it is helping to fuel the worldwide construction of a new telecommunications infrastructure. The economic benefits of this infrastructure are extreme because the building of this new communications foundation will continue to spur a new line of products, enable corporations and individuals to act with an unprecedented level of information available at their fingertips, and create an entirely new forum for conducting business (as is now occurring on the Internet). The amount of capital that is being used to build as well as to manufacture and purchase products to take advantage of this infrastructure has risen exponentially over the past several years and will likely continue to do so over the next few years. The resulting profits are, in turn, creating a new group of millionaires who are actively spending and investing their money, thus helping to continue to spur on the overall economy.
el paradisio |
