US Telecoms Flex Muscle In Asia (VZ)(T)

Verizon and AT&T are both working on deals to set up high-speed cable between the US and Asia. The infrastructure would help handle the increased high speed internet and phone traffic from corporations and consumers in the region.

The Verizon project, at a cost of about $500 million, will link the US directly to China. Traffic now flows through Japan and Hong Kong, which causes delays.

Verizon’s deal with companies that include China Telecom could be a huge shot in the arm to the US telecom. It allows it to put a low-risk bet on expanding Asia traffic while it builds out its more risky fiber-to-the-home project.

Verizon shareholder should have a good New Year.

Douglas A. McIntyre can be teached at [email protected]. He does not own securities in companies that he writes about.