Wilkins Digital Infrastructure, LLC (WDI) believes that there is an opportunity for the creation and rapid, profitable growth of a platform business in the Digital Infrastructure Services sector of the converging telecommunications and electrical contracting industries. This growing sector includes services such as:
In the United States digital broadband subscriptions grew by a compounded 49% between 2006 and 2009, with mobile and cable modem applications accounting for more than 80% of penetration. In 2010, mobile data revenues grew by 23%, a rate that is expected to continue through 2015. Despite this level of adoption and growth, as of 2011 broadband adoption in the United States lagged other emerging countries for speed and affordability; leaving the US at 7th in global penetration rates.
In summary, several related statistics make this market an attractive one to pursue:
More specifically, the U.S. small, medium and enterprise business markets increased demand for bandwidth is being driven by the rapid growth data intensive offerings, such as cloud/hosted services, which create higher demand for fast, secure, reliable connectivity. Results of a recent IDC SMB survey indicates continued growth in demand for bandwidth intensive services:
As a result of the increasing reliance of business on new service offerings, IDC has projected significant growth in demand for data and internet services which drive a corresponding increase in the demand for bandwidth. This cause-effect relationship is demonstrated below in the projection for VOiP services and increase demand in capacity to support those services:
The growth of real time, VoIP, video conferencing, and other data intensive applications produces high bandwidth data traffic growth, which requires more bandwidth and greater network performance. As a result, network performance is increasingly mission critical. The importance of acquiring additional bandwidth is illustrated in response to a recent IDC survey on investment priorities:
WDI has initially identified an opportunity for business development in the southeastern United States, emanating from this region’s relatively poor broadband adoption rates (as low as 24% in some areas) and the simultaneous population and commercial growth within certain second-tier cities (Huntsville, AL and Greenville, SC) and regional markets (i.e. Middle Tennessee, the Carolina’s). In such areas there is an institutional desire to do business with minority business enterprises and few such enterprises exist with the technical and managerial expertise, along with the access to capital, to capitalize on the opportunity.