Tom, always good to hear from you.
As you are aware, individual stories don't make a trend, but can offer insight into trends. I suppose that is where I was headed with an extra bit of exuberance yesterday.
Another well known tidbit: contractors are now offered at relatively inexpensive cost the ability to run fiber/coaxial/telco/etc. cable as a ready-made bundle at time of construction, since the cable cost is far less than the labor. They run the pre-configured bundle and later if desired can connect any or all at low cost to the homeowner.
I believe a "tipping point" is coming when (A) government's encouragement of broadband (as we have heard in the news), (B) converging forces to make the offering in construction, communities, and by RBOC's, and (C) technological cost reductions with increase capacity will revive equities in this sector.
Of course one can't play this as a day-trade realistically. The pace will be glacial relative to market flux. Still, betting AGAINST broadband is like betting FOR a long term oil glut. My hope is that if I'm in early and VERY patient, I can make a buck ... or three.
A few years ago a friend and I thought of starting a business subcontracting to developers for the specs and hired labor to "wire for the future" the homes they were building. Didn't work out for various reasons, but I believe we are closer to the reality of widespread broadband access and the escalator of increasing use.
Thanks for your interesting story and insight. Win or lose, I really enjoy watching the story unfold.
Regards,
- jk |
