How 5G Technology Networks Will Bring Opportunity


The introduction of 5G technology networks will revolutionize everything from internet (ioT), TVs, cable, smartphones, cloud businesses and even cars. That warrants more 5G technology investment. The downside is that while 5G offers new opportunities for investors, it may also negatively impact the technology of the past, such as 4G smartphones.

In the telecommunications world, 5G is already here. Faster and more rapid communications is a significant part of the initial sell. But longer term, 5G technology investment will warrant reviews by investors because the impact of 5G will be more far-reaching than some may think.

5G Technology Investment

An article by site analysis specifies that company stocks such as Verizon (NASDAQ: VZ), T-Mobile US (NASDAQ: TMUS) and Sprint (NYSE: S) are expanding their 5G networks. They in turn are being supported by semiconductor manufacturers Qualcomm (NASDAQ: QCOM), Qorvo (NASDAQ: QRVO) and Skyworks Solutions (NASDAQ: SWKS), among others. Wall Street observers are looking at all of these players as they determine how to make a 5G technology investment.

One analyst on the site said that 5G technology is likely to be a multiple year, secular driver broadly across the semiconductor universe. More suppliers of fiber optic cables and equipment to build small cells are already required, analysis said. Cloud computing infrastructure will also need new links as it is impacted. 5G will bring us not only smart homes, but smart cities and autonomous driving and industrial applications for ioT.

Consumer Changes

To the consumer, 5G will impact every aspect of life from TV and internet to transportation and smartphones. 5G will over the next several years bring more computing speed and ability to communicate, but will also negatively impact other proven but soon to be obsolete devices and technologies.

As investors make 5G technology investment decisions to participate in future profit opportunities, some accepted older technologies will be hit. Like a lonely landline telephone connection in a 4G world, older devices and strategies will be left behind. Internet access, cable connections and TV will not be the same. Aged 4G phones will be hit as will.

In their place will be newer, faster 5G and cell towers, Internet of Things, drones for everyday deliveries, remote health care and augmented reality phone apps, analysis writes. A 5G technology investment will be complex but rewarding to the savvy investor.

Ripple Impact

Bank of America (NYSE: BAC) recently estimated that the market for 5G semiconductors would reach $19 billion by 2022 compared to only $593 million last year, the report said. The ripple impact of 5G will be felt in fiber optic installation, cellphone towers, robotics, remote health care, overnight delivery services and virtual reality applications. To stock buyers, 5G technology investment opportunities will be overwhelming.

Leveraging domestic 5G suppliers higher is the U. S. ban on the leading Chinese 5G supplier, Huawei. With a 40% share of the Chinese smartphone market, this company has a significant 18% share of the global technology industry, according to an article in Reuters News Service. The result of the ban in the U.S. should be a more open and welcome 5G market for domestic American manufacturers.

Significant Return

For all their investments, consumer companies such as Verizon (NASDAQ: VZ), caution investors not to expect a significant return from their 5G expenditures until 2021. AT&T (NYSE: AT&T), however, says that it expects a quick return on its business-based 5G spending. One analyst quoted said 4G was seen as a boon to consumers, but 5G is perceived more as a business services technology. However, 5G benefit offshoots will play into the everyday role of consumers.

5G cloud gateways are being developed and will present 5G technology investment opportunities. Mini date centers are envisioned for links to cloud computing infrastructure, one analysis finds. Edge computing is a new strategy for operating on the fringes of networks, the article in analysis reported.