Industry Highlights


Digital Infrastructure Services Platform

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:

  • Cell site system integration
  • Distributed antennae systems
  • Fiber distribution (commercial and residential)
  • Security and access control
  • Structured cabling and fiber optics (voice, data, video)
  • Systems integration services
  • Utility audits
  • VOIP phone systems
  • Wireless networks
  • Design, commissioning, documentation and maintenance of wireless and wire line transmission systems and consulting and network component services


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:

  • The IT infrastructure market is expected to reach $13.5 billion in size in 2014
  • Global internet traffic will quadruple by 2015
  • US spending on network infrastructure will grow to $296 billion by 2015
  • By 2019 mobile broadband traffic will be 35x current levels

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:

graph 01

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:

  • U.S. business VoIP services expand from $3.7B in 2012 to $8.1B in 2017.
  • U.S. business Ethernet services expand from $5.2B in 2012 to $10.1B in 2017.
  • 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:

    graph 02

    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.

Overview

WDI’s focus is to provide hands-on, professional expertise for customers in the educational/governmental, general contracting/commercial development and digital content access provider sectors. With over 50 years of experience in the telecommunications industry and relationships amongst communications service providers, systems integrators and financial capital advisors throughout several industries, we are capable of providing the right solutions to optimize your business.

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