In the near future data usage will rocket higher because we'll begin to communicate with more things around us. We've already seen the first wave of mobile data growth thanks to our desire to communicate more easily with friends, family and work through phone calls, email and social media.
The current trend is communication between us (people) and machines, while the long-term trend is for communications from machine to machine. Rather than use our smart phones, imagine a car which can talk to the cooling system in your house, letting it know when you'll be home. Sounds pretty nifty, right?
It is but perhaps the most exciting opportunities for people and investors alike are those which we haven't comprehended already. Wearable devices, biotechnology and automated lifestyles are not that far away.
But how can we profit from the growth in these trends? The technology sector is a dog-eat-dog world where companies conquer then disappear within decades. Fortunes are made or lost in the process.
The simplest (and possibly the safest) way to invest in the future of technology would be to find infrastructure owners which have established moats e.g. those which look likely to be making a profit in 10 or 20 years' time because they command a dominant position.
Telstra Corporation Ltd (ASX: TLS) is the perfect example because we'll still need its superior networks to run our advanced technology. In fact we'll need it more in the future than we do now. Our use will only increase, not decrease, and with a commanding lead over its rivals like Singapore Telecommunications Ltd's (ASX: SGT) Optus, M2 Group's (ASX: MTU) Dodo and Primus Telecom, TPG Telecom Limited and iiNET Limited (ASX: IIN) it continues to be more appealing to businesses and individual's reliant upon technology.
Use of products like Google Inc's (NASDAQ: GOOG) Glass wearable technology and Chromebook laptops will only be viable and successful if they can connect to advanced wireless networks such as those provided by Telstra. Without internet connections they are practically a glorified calculator. Just think what a smart phone would be without a network!
Foolish takeaway
On both a conceptual and practical level Telstra's market position and advanced standing with Aussie businesses and individuals make it a compelling long-term investment. However, when investing price is what you pay and value is what you get, at current prices, the company is priced for long-term success and would not suit those who plan to sell in two or three years.
