Broadband Infrastructure Build-Out

Many investors focusing on the infrastructure sector tend to look at roads, water systems, power grids and the like, they often ignore the need for high speed internet and communications networks. In growing and developing nations these networks will need to be created in order to facilitate commerce and allow access to the global economy. But, the need is also compelling in more modern markets. The United States only ranks 25th in the world when it comes to broadband penetration. Just over 50 percent of the countries homes have access to high speed internet. Investors wanting to play the build-up of broadband networks have few ways to play the trend. The Broadband HOLDRs

represents a starting point for investment. Equipment makers Cisco Systems

and Juniper Networks

products can found in the largest carrier networks. Smaller firms dedicated to Tier 2/3 carriers such as Arris

and Occam Networks

will also benefit. Finally, fiber optic specialist Corning

should see increase demand for their cables.