Continuing our exploration on where to invest in 2012, we turn to the broadband sector — one of three sectors that should grow in 2012.
As the global appetite for the latest smart phone, the hottest new tablet, streaming video and the cloud grows over the next year, the world’s need for additional bandwidth will increase even more in place like India.
There are two broadband companies traders to look into to gain exposure to India‘s increasing broadband expansion. Both of these companies are thinly traded and have serious of up and down earnings, so some volatility should be expected.
Sify Technologies Limited (SIFY, quote) is an integrated Internet, network and electronic commerce services companies in India, offering end-to-end solutions with a range of services delivered over a common Internet backbone infrastructure.
SIFY services enable its business and consumer customers to communicate, transmit and share information, access online content and conduct business remotely using its private data network or the cloud via the Internet.
SIFY segments comprised of corporate network/data services which provide Internet, connectivity, security and consulting.
Hosting and managed service solutions provide internet access services to homes and through cybercafés that include online portal services and content offerings.
SIFY is also now developing e-learning software, helping to provide alternative forms of education to Indian.
The other Indian broadband service provider that U.S. traders can buy or sell is Rediff.com India Limited (REDF, quote), which is engaged in the business of providing online Internet-based services focusing on India and the global Indian community.
REDF operates in two segments: India Online and its U.S. publishing business.
India Online includes revenue from online advertising and fee-based services.
The U.S.unit include revenue from the REDF India Abroad Website and revenue from the print newspapers India Abroad and India in New York.
Rediff’s websites in India and the United States consist of communication services, news and information channels, and community features, including music, photo and video sharing platforms, search engines, and mobile.
Bottom line: Both SIFY and REDF should benefit from the increased broadband need in India as the population feeds its appetite on data-hungry broadband devices.