Tech Giants Set to Gain on Continued Broadband Explosion

Pushed by growing demand for fast Internet access, especially from China and other developing areas, the global broadband subscriber base is expected to increase by nearly 60 percent in the coming years, with 350 million new subscribers anticipated between 2011 and 2015.

By 2015, the total number of broadband subscribers worldwide will be 949 million, a 58 percent jump from 600 million in 2011, according to an IHS iSuppli Broadband & Digitally Connected Home Market Tracker report from information and analysis provider IHS (NYSE:IHS). The total number of broadband subscribers will come to 676 million in 2012, a gain of 13 percent from 2011, as seen in the figure below.

Broadband subscriber activity in the United States, has been especially strong, with telephone companies and traditional cable providers battling to score new customers. Telcos and their offerings—notably Verizon (NYSE:VZ) FiOS and AT&T (NYSE:T) Uverse —did well in the beginning of the uptake of their fiber services, that growth has slowed. As a result, traditional cable providers like Time Warner (NYSE:TWC) and Comcast (NASDAQ:CMCSA) are back in the lead, making up as much as 58 percent of net additions in the region during the second quarter of 2011, the most recent available full figures.

Here’s how these companies are reacting to the news:

IHS Inc. (NYSE:IHS): IHS shares recently traded at $85.30, down $0.86, or 1%. They have traded in a 52-week range of $67.88 to $90.00. Volume today was 39,293 shares versus a 3-month average volume of 170,322 shares. The company’s trailing P/E is 37.18, while trailing earnings are $2.29 per share.

Verizon Communications Inc. (NYSE:VZ): VZ shares recently traded at $38.75, down $0.46, or 1.17%. They have traded in a 52-week range of $32.28 to $40.48. Volume today was 8,414,255 shares versus a 3-month average volume of 13,880,400 shares. The company’s trailing P/E is 15.58, while trailing earnings are $2.49 per share.

AT&T, Inc. (NYSE:T): T shares recently traded at $30.30, down $0.13, or 0.43%. They have traded in a 52-week range of $27.20 to $31.94. Volume today was 14,773,833 shares versus a 3-month average volume of 24,696,500 shares. The company’s trailing P/E is 15.37, while trailing earnings are $1.97 per share.

Time Warner Cable Inc. (NYSE:TWC): TWC shares recently traded at $64.68, down $0.18, or 0.28%. They have traded in a 52-week range of $57.15 to $80.86. Volume today was 676,540 shares versus a 3-month average volume of 2,555,530 shares. The company’s trailing P/E is 14.94, while trailing earnings are $4.33 per share.

Comcast Corporation (NASDAQ:CMCSA): CMCSA shares recently traded at $24.85, up $0.12, or 0.49%. They have traded in a 52-week range of $19.19 to $27.16. Volume today was 7,525,670 shares versus a 3-month average volume of 17,698,600 shares. The company’s trailing P/E is 17.88, while trailing earnings are $1.39 per share.