Prepare to open your wallets, smartphone users. Next month, Verizon
All told, Cisco expects mobile data consumption to rise 26-fold between 2010 and 2015. With unlimited data plans dying, all signs point to telcos needing help handling the increase. And that's where Boingo Wireless
Boingo turned few heads when it went public last month and at today's price of roughly $8.50 a share remains off almost 40% from its debut at $13.50 a share. Analysts don't see much upside over the short term. I disagree. Wi-Fi networks will handle the inevitable spillover from a rising tide of mobile data, and Boingo, with more than 325,000 hotspots worldwide, manages more Wi-Fi than anyone else. Verizon happens to be a customer, as are BT Corp., Skype, and MetroPCS Communications
Wi-Fi may not be as sexy as 4G WiMAX or LTE delivered via satellite, but it's still fast, cheap, and widely accessible. As the Wi-Fi leader, Boingo fills what the research suggests is a large and growing data delivery gap between mobile users and telco networks. I've rated the stock to outperform in my CAPS portfolio as a result.
Do you agree? Disagree? Weigh in using the comments box below.
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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He owned shares of Google at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader.
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