Telecom Sector Report
One of the world's leading industries is undergoing a revolution.
Telecommunications is changing at an astounding speed, driven by the
convergence of technologies and demand for high-speed data and media
anytime and anywhere. Television, the Internet, and wireless technology
are all converging enabling people to access all of these mediums through
one wireless handset. The dramatic reshaping of these industries, requires
a tremendous amount of investment in new technologies. The dynamic changes
in the huge and growing sector offers potential investors excellent
opportunities in the years ahead.
When the telecommunications revolution began over a century ago, no one could have predicted where it would lead: telephones in nearly every household in the industrialized nations; the development of the radio, the broadcast television, cable television; the globe-spanning Internet; portable, personal satellite phones; the complete digitization of communications. U.S. Spending on Telecommunications topped $517 Billion in 1999 and according to MultiMedia Telecommunications Association forecasts, total U.S. spending for telecom equipment and services will grow to $794 billion in 2003. More broadly defined, the communications industry accounts for one seventh of the U.S. economy, a share worth $1 trillion annually and is growing at a rate twice as fast as the overall economy.
By far, the fastest growing segment of the telecom market is in the burgeoning mobile and wireless sector. From its invention only twenty years ago, to today the number of users continues to grow exponentially. According to the Cellular Telecommunications Industry Association, US wireless subscribers for the 12 month period ending June 1999 were up 26 percent over the previous year, totaling over 76 million. Wireless communications services - including analog cellular, digital cellular, personal communications services (PCS), pagers, specialized mobile radio (SMR) and low-orbiting satellites - are easier and cheaper to establish than wireline services and are becoming increasingly important on a global scale. Additionally, prices for wireless products and services dropped dramatically over the last decade and currently more than 40 percent of U.S. households own either a wireless phone or a pager. Adoption and usage rates are even higher in some European countries.
We have found several very promising opportunities in the telecom sector. The first is a publicly traded technology firm, specializing in wireless communications devices. The company manufactures high-tech electronic components such as AlphaTrak, a global positioning systems (GPS) unit that tracks and monitors shipping vehicles, helping to facilitate just-in-time manufacturing. The company will soon begin producing the DebitFone, a prepaid cellular phone system available fully configured, through vending machines. The company has signed a Letter of Agreement to acquire 100% of VENDAPIN, LLC, the patent holder of a newly developed pre-paid calling card machine that will help to eliminate billions of dollars of fraud in the pre-paid calling card industry.
For the full Telecom Industry Report and more information about the companies described in this mailing:[CLICK HERE]
Emerging Markets - Hot Spot For Wireless Growth
Demand for wireless communications will grow even faster in developing markets as entire economies bypass analog technology and jump straight to digital. More than 2 of the six billion people in the world have yet to place a single phone call. Global telecommunication companies see these numbers as tremendous opportunities, and they are all hoping to be major players in the developing economies of regions such as: Latin America, South East Asia and Africa. Because of favorable trade rules for telecommunications with and a surge of privatization initiatives, companies operating in Latin American offer perhaps some of the most promising investment opportunities. As the wireless industry continues to grow exponentially, there are a variety of ways to profit from this growth. Aside from companies digging up roads to lay down fiber optic cable, new technologies are enabling more flexible satellite and airborne networks as an alternative to underground fiber optics.
Our emerging market play in the wireless sector is the exclusive provider of the Airborne Relay Communications System (ARC System), an innovative, new wireless telecommunications technology. The ARC System is a high-altitude aircraft-relay telecommunications system designed to replace or augment traditional ground-based wireless infrastructures, as well as high and low earth orbiting satellites - at a fraction of the cost of such systems. It is an ideal solution for providing wireless access via AMPS, GSM, TDMA, or CDMA modulation schemes, as well as wireless fixed applications and Internet solutions to developing countries lacking terrestrial infrastructures, and to developed countries expanding coverage in existing wireless markets. The ARC System offers a substantial cost-savings vs. satellite or conventional terrestrial infrastructures, and can be installed in a fraction of the time it takes to build out a terrestrial infrastructure.
The company we have identified has received a letter of intent from a major Brazilian telecommunications service provider, stating their intention to purchase ARC Systems as an integral part of their operational network. After the successful completion of the ARC System ALPHA testing in September 1999, contract negotiations were entered in to for its first production system. The company has also received licenses from ANATEL (Brazilian FCC equivalent). More details regarding terms of a potential contract should emerge this quarter.
Investors who want more information about the telecom sector and the small
cap opportunities we've identified should click on the link below:[CLICK HERE]
Demand For Bandwidth
Second only to the trend towards wireless is the demand for more bandwidth capacity via fiber optic cable. Optical fiber is becoming the new medium chosen by local and long-distance phone companies, as well as cable companies, to meet the demands for greater bandwidth and faster transmission speeds required by new technologies. The growth of the Internet and the emergence of multimedia applications such as videoconferencing are the driving forces behind the move to fiber optics. Overall spending in the fiber optics market, by carriers and others, has risen from $4.1 billion in 1990 to $12 billion in 1998. Fiber optic equipment, including transport equipment and digital cross-connects, is projected to compound at annual growth rates of 23 percent through 2002, increasing from $10 billion in 1998 to $22.9 billion in 2002. Companies that can offer telecom equipment companies new technologies to expand bandwidth over existing fiber optic cable will be well rewarded, as will early investors in these companies.
Our Bandwidth play is a public company that is developing new applications for its state-of-the-art, proprietary optical and light technologies. Its primary activity has been using a patented technique to acoustically manage light. The core Acoustical Optical Management Technology has a wide and potentially lucrative spectrum of applications, some of which are already producing earnings. Management and industry analysts believe that the greatest application potential may be realized in Digital Communications, through revolutionary technology that can transmit 65,536 separate channels of light over distance in a singular optic fiber. This quantum leap in optimizing capacity of existing fiber networks may be capable increase to the current internet backbone capacity 400-fold! We believe you will be as impressed as we are with the breadth and potential of the company's technology.
For the research report on the telecom sector and the three small cap
opportunities described herein, click: [CLICK HERE]
======================================
if you wish you can be placed on our PERMANENT REMOVE LIST just,
CLICK HERE to be permanently REMOVED
====================================== WSI-0309B