Internet Speed Blasts Ever Higher
April 2005
It's the 40th anniversary of Moore's Law. The famous law since proved absolutely correct stated that computer processing power will double in speed every year along with halving in price. In fact Moore himself reckons the law will remain valid for at least another 20 years.
But is a similar law at work with internet speed? In the last year ISP's have been upping the pace of when it comes to delivering better and higher broadband speed. Consumers are benefiting two ways, increased speed and better availability.
But the pace of internet speed in the UK is slow compared with what's going on in the Far East, specifically Korea, Japan and Hong Kong. In fact a Hong Kong ISP is now marketing a 1 Gbps broadband connection which is roughly 166x faster than standard home broadband in the UK. It's not cheap at around £120 a month but with deflation in the technology sector rife expect prices to drop 80-90% within a few years.
The Future
With a Moore's Law kind of working in the internet world expect these kind of speeds to be available in the UK within a few years. When that happens we may see the home computer start to disappear to be replaced by simple terminals (a flat screen monitor with a wireless keyboard). All data and programs would be stored, run and maintained from an online server. Computer problems could greatly be reduced as a team of dedicated technicians would run the giant server and be responsible for fixing all problems.
Which Stocks To Invest In
If internet speed is going to go through the roof over the next few years then there must be good money making potential. Investing in the right stocks is as ever a hard question to answer. But look to industries which will fuel this growth and to possible new markets and services that can be developed on the back of lightening speed.
For example, Apple seems to have an edge with their iTunes download service combined with their iPod. Apple also scores well when it comes to computers AND home entertainment systems. Higher internet speeds can only be an advantage.
Perhaps Apple will be at the forefront of taking advantage of what the new speed can offer. If so the stock could be a good investment for the next 5 years even though it's enjoyed a hell of a run over the last 24 months.
We like this stock and are looking to accumulate it on any weakness and hold the investment for the next 2-5 years.
Apples 3 Year Weekly Chart
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