New opportunitis?

Andrew Kaplowitz - Barclays Capital

Good morning. So Jose, you have been pretty careful to speak at least somewhat generically about the wireline fiber opportunity, but given the conversations you have had with your customers and the increased chatter, really just over the last couple of months, what is your confidence level that you could see a significant ramp-up in revenue in 2015, maybe even a couple hundred million dollars? I don’t want to put words in your mouth, but I am going to try.

Jose Mas - Chief Executive Officer

Well, if you take a step back, I think the most exciting part of the opportunity is the fact of its size and scope for everybody in the industry. I think everybody that’s in this industry that participates on that side is going to benefit it’s such a large opportunity . So we are obviously really excited about it. There is a number of different carriers that are talking about their plans for the next couple of years. So the answer Andy is yes we do expect to participate. I think it is premature to put numbers to it but it’s obviously we are comfortable in saying it’s a big opportunity and its size and a scale. And one that at least for our segment of that business which is pretty small and dramatically moves the needle for them.

The quote above is taken from MTZ’s cc. It is talking about carriers’ fiber network expansion in the next couple of years. By reading between the lines, it seems there will be large expansion in carriers’ fiber network. It is in line with what I read about Google fiber roll out and how carriers will have to respond, and etc.

So here is the big question - who will benefit the most? who are the suppliers to Google fiber project and carrier capacity expansion? How will AFOP and UBNT fare in this?



good question, but I have no idea.

I actually ahas a different thought as I read it. My thought was “I wonder what T-Mobile has planned?” They are completely changing mobile telephone rates in the US. My family went from paying $260 a month to paying $130 in the space of three months as our carrier slashed rates to compete- some rate decreases happened without us even asking.

I wonder if they have plans to compete beyond telephone service? Cable and or broadband would be great. The rates in non competitive markets are ready to be disrupted by a deep pocketed player. UBNT would take a lot of cost out by taking the last mile in the airwaves rather than digging up streets.