Making sense of trends and data

Trumping optical markets

Published 11.10.2016
Donald Trump will be the next president. How might his policies affect the optics related market LWRAS covers? Since Trump didn't offer many specifics during the campaign, all that can be offered is speculation.

  • Lightwave's editor speculates on Trump's effect on the optical communications market. Net neutrality may be in trouble, although that wasn’t a simple left-right issue, at least among internet users. Municipal broadband pushes will get less support from the Federal government, they’ll have to look for state aid. Trump’s trade positions will cause issues for foreign companies looking to do business in the US, Huawei and ZTE are specifically mentioned. Optical communications manufacturing has been off-shored in recent years, that is likely to catch the eye of the Trump administration, but Congress might be on a different page. Trump is against the AT&T/Time Warner merger. Perhaps he’ll try and break up Comcast/NBC Universal?

  • Fossil fuel producers and associated companies are thrilled with the Trump win, and their stock prices have been soaring. Renewables will likely have a bumpier ride going forward. Obama’s environmental policy is almost completely via executive orders, all of which can be rescinded with a stroke of Trump’s pen. Early indications are that Trump will yield that pen. The new Supreme Court justice may also play a devastating role when it comes to environmental regulations. We may see if renewable energy will be able to maintain itself without subsidies.

  • The solar industry sees Trump as a threat with good reason.

    Trump has questioned the cost and reliability of wind and solar energy while pledging new support measures for the coal, oil and gas industries. Wind and solar industry observers fear Trump could roll-back federal Clean Power Plan (CPP) legislation and the Production and Investment Tax Credits currently supporting wind and solar growth.

    Trump will at least be able to slow penetration of renewable, but he will not be able to eliminate the effects of natural gas on coal.

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