Apple iPhone users are “data guzzlers,” The New York Times reported on Sept. 3, and their demands on AT&T’s cellular network are outraging customers. “Dropped calls, spotty service, delayed text and voice messages and glacial download speeds” have become the norm. As a result, AT&T will spend most of its $18 billion capital-expenditure budget to improve its 3G wireless network, including 2,100 cell towers to boost coverage.
Cramer on Thursday said many of the problems, and where the carriers are making their investments, is in these towers. There’s a traffic jam of sorts as a tremendous volume of data bottlenecks these crucial points of the mobile Internet highway. So the solution is to build more cell towers, more and stronger antennas per tower and better connections to the wireless networks to handle the ever-increasing amounts of traffic.
The play for investors then is to buy the owners of these towers. The top two companies in the industry are American Tower and Crown Castle. But there’s another stock that might be better. Cramer highlighted it during Thursday’s Mad Money. Watch the video for his full report.
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