Tuesday, March 24, 2009

Telecom Still Alive on Wall Street

Yesterday, as the Obama Administration's economic stimulus plans were unveiled in Washington, the Dow got a boost on Wall Street. Among the most successful jumps on the markets were Telecom leaders AT&T, Verizon, and Motorola. Investors and Analysts appear to be optimistic about the effect that the $7.2 billion in broadband stimulus will bring on the telecom giants.

As we've come to know well, spending is the key to our U.S. economy. Earlier we reported on AT&T's plans to devote $11 billion to wireless broadband. We've also learned that Verizon will have to decide what to do with it's $1.6 billion from the senate stimulus plan. Countless other funds of untold billions are no doubt becoming available to smaller telecom and broadband providers, all of which seem to carry a common theme: bring fast Internet connections to rural and low-income areas.

So, how does all this affect you? Well, first of all, leading the world in fixed wireless broadband technology will certainly be beneficial for keeping the U.S. on the leading edge of global markets. But, more immediate effects will be felt by the businesses in and around rural areas. Businesses serving rural areas will see increased e-commerce opportunity. Businesses in rural areas will see lower costs and higher availability for broadband access via wireless GSM infrastructure. The bottom line: it's encouraging to know that the telecom industry leaders are planning and positioning for growth.

Labels: Broadband, Economy, Fixed Wireless Broadband, Stimulus