Three Fools discuss the industry and where it sits in the overall fiber optic equipment value chain. This year, one of the hotter industries has been the companies that make components for fiber optic communications equipment. The following is a transcript of their discussion. Let' s start off with the big picture.
More Internet users mean more bandwidth is needed.
Optical networking is the way to provide exponential bandwidth. Bandwidth is driving growth, as well as the carriers' need to cut costs. Investors need to be careful, however. Fast growth doesn't necessarily mean profitable companies with sustainable businesses. As exciting as the area is, investors should really be patient and choosy.