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Global Megatrend identified – Growth in demand for high speed data

  • Comcast Corp is a global stock benefiting from demand for high speed data
  • Number of internet users around the world now tops 3.4 billion, according to Internet Live Stats, 2016

Staying connected just isn’t enough anymore. Connection speed is what matters. Highperforming Internet connectivity, or broadband, is becoming ever more important to society, providing the foundation of modern economies and human interaction. The average American spends more time on technology and media than work or asleep. This is a trend also occurring all around the world today. Because attention is highly multitasked, the average American has over 31 hours of activity in a day

 

The average American spends more time on technology and media than work or asleep.

Internet usage continues to grow rapidly. The number of Internet users around the world now tops 3.4 billion, according to Internet Live Stats, 2016, and is expanding much faster than global population. Cisco forecasts that consumer Internet traffic will more than triple over the next five years.

 

Internet traffic increasing.

Customers want to do more and more with their high-speed connection — from streaming TV, film and music, to playing video games and chatting online with friends and family, to archiving their digital files in the cloud, and on and on. An increasing proportion of time spent on the internet is on video. This will sharply accelerate the demand for both fixed and wireless high speed broadband demand.

 

Customers want to do more and more with their high-speed connection

Around 50 billion devices will be connected by broadband in 2020 with innovative applications in healthcare, business, education and entertainment sectors. Evolving Artificial Intelligence (AI) and broadband technologies will lead to sophistication of major applications resulting in virtual companies, business conferences, defence simulation, virtual classroom and even virtual space tours to name a few. To support this growing demand for high speed data the newest generation of DOCSIS broadband, known as 3.1, provides a near-term path toward continued improvement of cable broadband performance, with network capacity up to 10 gigabits per second.

DOCSIS broadband

 

Comcast Corp

Image: Reuters

Comcast’s strong balance sheet, leading market position, investments in driving innovation and strong free cash flow generation and consistent capital returns back to shareholders are many of the attributes Insync consider important in a high quality company.

Comcast Corp is a high quality company which is a beneficiary of the growth in demand for high speed data Comcast is the largest operator of cable delivered broadband and pay-TV service in the United States and, through its NBC Universal subsidiary, is a global entertainment company. Its networks reach 56 million homes and business locations, providing service to 22 million television, 24 million Internet access, and 12 million phone customers.

Comcast also owns NBC Universal, which operates 28 national or regional cable networks, including USA, CNBC, and E!, and the NBC broadcast network. NBCU also owns a film studio, two U.S. theme parks, and a 51% stake in another park in Japan.

Comcast has invested extensively to build a broadband network that is bringing the fastest and most reliable Internet speeds and products to the most customers, in their homes and on the go. To make sure their customers get the benefits of high speed on all the internet-connected devices in their homes, they also offer the fastest in-home wireless routers. Comcast’s Xfinity Wireless Gateway is a next-generation router that simultaneously connects dozens of wireless devices, including laptops, tablets, smartphones, internet-connected TVs, Xboxes and gaming consoles. When the whole family is online, the Xfinity Wireless Gateway helps to ensure that everyone has the best experience across all of their devices.

The company is investing in wireless services for the convenience of Xfinity Internet customers on the go who have access to tens of thousands of wireless hotspots all over the country— in train stations, shopping districts, malls, parks, boardwalks and many other places they are likely to be.

Comcast’s strong balance sheet, leading market position, investments in driving innovation and strong free cash flow generation and consistent capital returns back to shareholders are many of the attributes Insync consider important in a high quality company. The company is trading on an attractive free cash flow yield of 6% with future growth in cash flows supported by the growth in demand for high speed broadband.

Monik Kotecha

Media contact
Mr Monik Kotecha CIO Insync
Fund Managers (02) 9216 2977 0413 768 480
mkotecha@insyncfm.com.au www.insyncfm.com.au
Distributed by Chris Hocking Strategies 0418 603 694

Originally published 10 November 2016.

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