How Will 5G Impact Telecommunications and the Market?
5G, which stands for 5th Generation, is the 5th phase of mobile networking. It is a new universal broadband system succeeding in the previous generations of networks. 5G creates a modern type of network built to bring practically everyone and everything together, including computers and smartphones. It aims to radically transform our lives with the latest wave of superfast broadband network infrastructure. This technology is supposed to have a significantly faster speed and ability that enables files to be accessed in a matter of seconds.
Furthermore, 5G will have a major role in shaping the communities of tomorrow by driving other innovations that will vastly improve connectivity, enhance transportation, learning, and creativity. Industries such as the Internet of Things including smart houses, self-driving vehicles, digital reality, and more will be included in the comprehensive introduction of the network. It will contribute to the re-engineering of a range of companies and user devices.
Mobile communication companies such as T-Mobile have already started deploying the 5G technology ahead of competitors Verizon and AT&T. As 5G continues to roll out across sectors, the future of the impacted industries looks promising. Investors may find the greatest profits in the fundamental infrastructure, equipment, and technology that will actually be using the 5G network.
According to Investors.com, the top companies involved in the 5G infrastructure are Apple, Samsung, and Chinese smartphone makers who can price phones only 10% above the cost of high-end 4G phones to drive consumer upgrades. Additionally, internet companies such as Facebook and Amazon are expected to see a boost in revenue due to the deployment of 5G.
The Semiconductors industry is also a key player within the market. They allow the devices and products we use to work and interact with each other. These companies build and manufacture electronic components and chips for mobile networking.
In 2019, the United States accounted for nearly half of the $418 billion in annual semiconductor spending. According to the Semiconductor Industry Association, these chips are the United State’s 4th largest export. However, industry experts have started to see a negative impact to the industry due to the COVID-19 pandemic disrupting production across the globe.
While all of the impacts of this new technology can not be quantified as of yet, many are still hopeful. What is certain is that this new technology will have ripple effects across a number of industries and regions. Ultimately, 5G networks can offer an unparalleled degree of interconnectivity. This new generation of network links more users quicker and more effortlessly than ever before.