Betting On Wireless Infrastructure

It seems that almost everyone has a smart phone these days as we live more interconnected and busy lifestyles. Features such as mobile internet and email are standard on most new phones and consumers are demanding quicker access to movies and applications via wireless devices. However, many analysts are forecasting a bandwidth crunch. New wireless network architecture such as 4G promise quicker data downloads, but just as our aging sewers and bridges need repair, so does our wireless infrastructure. Analysts estimate that there is a need for about 12,000 to 15,000 new cellular towers to be built to handle the amount of upcoming data. American Tower AMT currently is the largest owner of these structures in the world and has been quite ambitious in moving into emerging markets to capture the growth there. Another play would Crown Castle International CCI. When a cell phone connects, it first connects to the tower network and then to the internet or phone companies network. That second connection is the backhaul linkage. There are several ways to create a backhaul link, but the biggest growth could come from microwave connections. Both Aviat Networks, AVNW and DragonWave DRWI are two growing small caps specializing in the area.