Aruba, Ruckus, Aerohive pop as FCC approves $2B Wi-Fi plan
Jul 11 2014, 13:50 ET | About: Aruba Networks, Inc. (ARUN)
The FCC has cleared a plan to spend $2B - $1B/year in 2015 and 2016 - to bring Wi-Fi to U.S. schools and libraries using funds from its E-Rate program. "Because of what we do today, 10 million kids will be connected next year who otherwise wouldn’t," predicts chairman Tom Wheeler.
Wi-Fi equipment vendors Aruba (ARUN +4.6%), Ruckus (RKUS +5%), and Aerohive (HIVE +4.5%) have rallied on the news, much as they did last month after Wheeler first floated the plan. Ubiquiti (UBNT - unchanged) might also benefit from the initiative.
The plan has some critics. Some schools and teachers unions argue it doesn't cover enough schools, and have also noted it doesn't guarantee funding for future years.
Ruckus reports on July 30, and Ubiquiti on August 7.