Widely seen as the national model for digital inclusion, Connected Nation promotes higher broadband penetration and adoption.
Although it initially targeted four states - Kentucky, Ohio, Tennessee and West Virginia - the ultimate focus is all 50. Connected Nation’s research states that every 7% increase in broadband adoption could result in the following benefits:
- Job creation of around 2.4 million
- Annual health care cost savings of $692 million
- Annual fuel savings of $6.4 billion
- 3.2 billion fewer pounds of CO2 emissions per year
- 3.8 billion hours saved by accessing broadband from home
- $134 billion in direct economic impact
If Connected Nation’s numbers are anywhere close to those above, President-elect Obama might just be on to something. Of course, this gargantuan task translates into some real investment opportunities on this side of the fence.
7 Ways to Connect to Broadband Penetration Profits
One way to play the broadband penetration build-out is via specialty chipmakers that supply chips to the equipment companies. The following four companies all specialize in producing broadband chips:
- Broadcom (Nasdaq: BRCM)
- Conexant Systems (Nasdaq: CNXT)
- Texas Instruments (NYSE: TXN)
- Standard Microsystems (Nasdaq: SMSC)
Another way is via equipment makers like Cisco Systems (Nasdaq: CSCO) and Juniper Networks (Nasdaq: JNPR). Cisco and Juniper’s equipment - at the heart of all broadband networks around the world - controls many different kinds of Internet traffic and directs it to its final destination.
A third way would be via Corning (NYSE: GLW), one of the world’s largest manufacturers of optical fiber, optical cables and other hardware and equipment components for the telecommunications industry.
It’s clear that President-elect Obama has many challenges facing him once he sets up shop. But you can bet that this Blackberry-toting, tech-savvy guy wants to be connected everywhere he goes.
