May 13, 2010
If you happen to be reading this on your BlackBerry or iPhone, or watching the video below on your Droid Incredible, then you're contributing to what Motley Fool analyst Eric Bleeker calls the mobile data "explosion."
Every time we press send on our mobile devices, we're pushing data out into the wild blue yonder -- data that's getting carried, sorted, managed, and delivered by a long list of technology and communications companies. While it probably won't come as a surprise to hear that the mobile data market has grown by leaps and bounds over the last decade, it may blow your Bluetooth to learn that the industry is expected to become 39 times bigger than it is today in just four years. If you're a growth investor, that should be music to your earbuds.
So who wins and who loses in that kind of explosion? Well, even though carriers Verizon (NYSE: VZ ) and AT&T (NYSE: T ) are bound to bring in millions of new data customers in the coming years, their landline operations will surely become a liability, and pricing pressures on their cellular voice and texting services are sure to keep margins slim.
On the other hand, Qualcomm (Nasdaq: QCOM ) , which established standards for wireless cellular communications and holds a number of critical patents in 3G technology, will benefit from widespread adoption because it picks up a generous licensing fee every time a 3G mobile device is sold -- by any major U.S. telecom! It also has licensing strengths abroad which should power the company's bottom-line as developing countries build out faster networks.
Talk about a big boom. And you know what's adding fuel to the explosion? Video ... like this one:
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