The network provider for Apple’s wildly popular smartphone has struggled at points to deal with usage overload, notably at this year’s South by Southwest Festival in Austin, Texas. While that may be bad news for the provider and its customers, it’s a business booster for a company like CommScope.
AT&Tneeds to build out its wireless infrastructure to meet the demand from iPhone users, especially with the newest iteration, the 3G S, now on the market. Cramer thinks that CommScope, thanks to its acquisition of Andrew, will get the call. But his CTV endorsement is much bigger than just a play on AT&T.
Regular Mad Money viewers know how bullish Cramer has been on the China’s expected $40 billion wireless stimulus, much of which will go toward infrastructure. Well, CommScope should benefit from that rollout, as well as one in India. Management said at its last investor presentation that the first quarter alone saw 45 million new Indian customers come on board, and they expect 100 million by year’s end. Plus, there’s the US broadband build-out, from which CommScope, along with Cisco Systems and Ciena, should see increased business as well.
Admittedly, Cramer urged a recent caller to go with Ciena or Cisco over CommScope, thinking that either of the first two were better investments on US infrastructure spending. But that was before he knew about the acquisition of Andrew, supplier for sophisticated networks, in late 2007. The move made CTV a major player in the continuing worldwide adoption of and growing access to the Internet.