Speculate on the Next Internet Revolution

There's an Internet revolution coming, and as I always say, it's best to own the arms dealers in a situation like this. The wave of the future is WiMax. The way to surf it is Alvarion (ALVR - commentary - Cramer's Take).

I recently signed up for a new broadband Internet account at the rate of $49.95/month. In the year 2006, it seems ridiculous to me that I am paying $50 for what I consider a commodity. As it stands today in America, you can get your Net fix via three main avenues:

1. Broadband access, which includes DSL, cable and an assortment of other high-speed connections.
2. Wireless access, which includes hot spot-type setups using WiFi access. and
3. Dial-up access, which is as advertised: You plug into a phone jack and dial into the Internet.

Although some dial-up companies are expanding their customer bases, dial-up will die soon enough. Broadband has good speed but is expensive. And wireless is promising, but WiFi doesn't cover a large range of areas without a large encompassing network. WiMax -- worldwide interoperability for microwave access -- is an all-in-one Internet offering, extremely fast and wireless (read: low-cost), and it has the ability to provide large coverage, much like a cell-phone network.

Source: HowStuffWorks

WiMax operates much like WiFi, but faster, 70 megabits per second, vs. WiFi's 54 megabits per second. WiMax also covers a much larger radius, about 30 miles to WiFi's 100 feet. While I can't be sure this is going to be the definite Internet protocol moving forward, I think it certainly makes the most sense.

My pick for the way to play the pending shift from current Internet access to more advanced access is Alvarion. Alvarion is an Israel-based leader in wireless broadband, providing systems to carriers, ISPs and private network operators.

Alvarion is known as a major player in wireless solutions, and it is leading the charge in WiMax with its BreezeMax offering. It also has taken the leadership role in founding the WiMax Forum, an industry-led, nonprofit corporation formed to promote and certify compatibility and interoperability of broadband wireless products.

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James Altucher is a managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds. He is also the author of Trade Like a Hedge Fund and Trade Like Warren Buffett. At the time of publication, neither Altucher nor his fund had a position in any of the securities mentioned in this column, although positions may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback; click here to send him an email.

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