I would very much appreciate your thoughts about Sierra Wireless (NASDAQ:SWIR) who are also involved in this space.

I continue to be a big fan of your service and your daily video commentary is a welcome addition.

 

Eoin Treacy's view

Internet connectivity is as essential to the modern economy as electricity and water and bandwidth needs to increase in order to cater to the number of additional connected devices coming on stream. 

If you think about how many devices in your home connect to your modem and compare that to how many used it a decade ago you’ll likely notice a big change. My children barely watch TV. When they want to see something they go on YouTube or Netflix both of which are streaming services. 

At this service a typical audio file is about 8mbs while a video is closer to 50mbs. In future I can envisage recording virtual reality but that will represent another step change in file size and will not be possible without major infrastructure development to support it. 

Perhaps more relevant from an investment perspective is 5G mobile connectivity which will beef up the ability of autonomous vehicles to relay information back to base and will give a boost to artificial intelligence applications. 

Cisco, F5 Networks and Juniper Networks are among a group of companies benefitting from this buildout. Sierra Wireless is a much smaller company but is currently engaged in an explosive breakout. The first clear downward dynamic is likely to represent a peak of at least short-term and potentially medium-term significance.