Upcoming 5G fixed wireless networks are likely to gain market traction from 2019. Total revenue of this network standard is expected to reach $1 billion by the end of 2019, per a recent report by SNS Research. The research firm has estimated that the initial cost of establishing last-mile connectivity (local loop) can be reduced by as much as 40% compared with FTTP network. Notably, 28 GHz frequency band is mostly preferred by carriers for early 5G-based fixed wireless network deployment.
U.S. telecom behemoth Verizon Communications Inc. VZ is currently conducting field trials for its upcoming 5G wireless network with partners. The company is looking at mobile hotspot and home-based fixed wireless for initial deployment of the next-generation 5G wireless networks in the united States in 2018. Verizon is focusing on building a fiber and wireless infrastructure in a bid to deliver mobile video efficiently.
Beside Verizon, U.S. telecom giant AT&T Inc. T is also conducting field trials on 5G fixed wireless network. Regional wireless operators such as C spire and United States Cellular Corp. USM are also reportedly considering 5G fixed wireless network as a means to deliver last-mile broadband connectivity to underserved rural communities. Tech giant Google, of Alphabet Inc. GOOGL, has also entered the fray after its acquisition of Webpass in October 2016, which provides fixed wireless connectivity. All the above mentioned stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Advantage of 5G
Verizon claims that its 5G network will provide a download speed of 1 Gbps (gigabit per second) which is 200 times the throughput of the currently available standard 4G LTE network. Latency period of data delivery will be in single milliseconds. Further, 5G technology is designed to be more power efficient than any other standard wireless network available these days. Therefore, 5G-enabled mobile devices are likely to last a lot longer than their 3G or 4G counterparts.
Additionally, superfast 5G mobile networks will be of utmost necessity in managing the exponential growth of internet-connected devices, popularly known as Internet of Things (IoT). The U.S. telecom industry has lately emerged as an intensely contested space where success thrives largely on technical superiority, quality of services and scalability. Thus, in order to stay ahead of competitors, existing players need to be constantly on their toes to introduce innovative products. At this juncture, we believe Verizon’s drive for 5G wireless network bodes well for future growth.
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