What the 5G Rollout Really Means for Consumers…And Investors

What the 5G Rollout Really Means for Consumers…And Investors

e recently discussed the market opportunity and some of the technical aspects associated with 5G, shorthand for the fifth generation of mobile network technology that is widely expected to expand the scope of mobile data and connectivity. The simple truth is that for carriers to recoup their hefty investments in any new mobile network, consumers and businesses need to be able to connect to that new network as well as the existing ones. That means devices not only need to access the latest and greatest network, they also need to be backward compatible with prior ones to ensure usage as the new network’s capacity is built out.

While there have been several devices that have connected to mobile networks, including PCs, tablets, and wearables, the original big seller was the mobile phone. While such a rudimentary device can still be found if one searches high and low, it has been replaced by the ubiquitous, wondrous and highly addictive smartphone. Smartphones don’t just make calls — they are used increasingly to access the internet, shop, chat, stream videos, interact on social media, and access other services. In 2019, smartphone shipments totaled 1.38 billion, down modestly from 1.41 billion according to data published by IHS Markit, but as we’ve seen in the past, the deployment of next-generation networks that bring greater data speeds tend to foster a smartphone upgrade cycle. For context, exiting 2019 GSMA found there were 5.175 billion unique mobile subscribers across the globe.


About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

Comments are closed.