Some investors claim this is the only way to play the Internet sector. Don't become an Internet trading casualty in the online war for supremacy. Make money with those selling the weapons of war. The companies in this group provide massive amounts of hardware needed to maintain service on the Internet. They provide everything from servers to phone lines and fiber optic cable. Without these companies there would be no World Wide Web.

These companies are involved in data networking equipment; Internet security equipment and software; PCs/servers, broadband semiconductors; telecom and related services ; and telecom equipment.

Data Networking Equipment

companies supply the building blocks for the Internet. This equipment connects computers using wire, fiber and telecommunication lines. Several types of equipment are essential to the building of the TCP/IP Internet system. Routers, which direct incoming data traffic generated on networks toward its eventual destination. Remote access devices answer a user's call and switches the session to a router or a switch. This is needed when a user connects to an Internet service provider via a modem or ISDN. Switches allow a provider to expand its network and modems allow remote callers to use the existing analog phone system.

Security Equipment and Software

Internet security companies address transmission security, which can be resolved through encryption and virtual private networking; transaction security, which can be addressed through encryption - typically bundled in software; external security breaches through the internet connection, which can be prevented through firewalling and external security breaches from dial-up systems for remote users, which are averted through user authentication schemes and passwording. Finally, user authorization breaches.

PCs, Servers and Semiconductors.

Personal Computers (PCs), RISC-based workstations, minicomputers and mainframes can connect to the Internet, either as servers or as clients. While some companies focus on the internals making specialized microprocessors faster and faster to handle more and more bandwidth.

Telecommunications and Related Services

Value-added service providers lease telecommunication lines and run IP or X.25 data over them. In fact, Internet service providers are resellers of services of services from interexchange carriers (IXCs), competitive access providers (CAPS) and, to a lesser extent, the regional Bell operating companies (RBOCS). Long-distance companies historically have provided the majority of the underlying infrastructure of the Internet. Increasingly, these companies are expanding their role from providing transmission to directly providing value-added services to the end-user. Local telephone companies (LECs) provide the actual connection to customer premises and carry telecommunications traffic within a specific region. Over time, it is expected that the RBOCs will develop a substantial Internet presence provide traditional Internet access and offer content-based services. Cable companies have substantial networks that connect to 2/3 of US homes. Although these networks currently do not support IP data applications, broadband access services is likely to emerge.

Telecom Equipment.

Traditional telecom is predominantly related to voice calls. Recently, telecom carriers have been deploying data communications services, which is likely to grow substantially. Telecom equipment companies help carriers build the infrastructure for these data networks.

These are some of the stocks listed in the Infrastructure sector:

If you would like to see our entire list - look in our profiles. CLICK HERE

Infrastructure is only one of seven subsectors explored in


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