Now, it has been usurped by none other than the 5th Generation, or 5G. With competitions, mergers, and even politics involved, it might be safe to say that it’s confusing to be confident in your 5G stocks investment choices. Here are some companies that show the most substantial potential for 2020.
T-Mobile Inc (TMUS)
T-Mobile is a US-Based company, seeking to push hard into the 5G industry. One of the key benefits of this, and for all current US companies, is that one of its largest competitors, Huawei, has suffered from the US-China Trade War.
Apart from that, these stocks show the highest promise due to its potential merger with Sprint, another key player in the US markets. While the merger is being challenged at this time by the Court, if this merger happens, the stocks will experience an inevitable rise in investor confidence.
Crown Castle (CCI)
One of the most fundamental differences between 4G and 5G is higher frequencies. While that may not seem as important, a key takeaway from 5G over 4G is less signal penetration. What this ultimately comes down to is the 5G network needs far more infrastructure than its predecessor, especially in the small-cell nodes.
Crown Castle is a company that specializes in these small-cell nodes. The company sports an impressive 65,000 small nodes, with 20,000 more planned in 2020. The best part is companies rent out tower space rather than spend the money to build them. What this translates to is a large stream of recurring income that the company will have for years to come.
Qualcomm Incorporated (QCOM)
Qualcomm serves as one of the largest mobile phone chip suppliers of the world, with a stake already made within the 5G market. The primary focus of the company is the development of the premium Snapdragon 8 chipsets.
The company tends to specialize in high-end mobile and smartphone products, with their products performing as well as that mandate. However, Qualcomm is currently poking around with the prospect of creating a cheaper 5G chip that would help the non-rich.
This move, should it be successful, will have a significant impact on its sales, breaking into the lower-end market of the chip industry. With 5G on the rise, this company can show dividends to the interested investor.
Another key 5G player that stands to gain enormous profits from the current trade wars, Ericson, is a heavy-duty Swedish communications equipment company in its own right. The company will serve as a critical player within the 5G market, rolling out telecoms equipment, especially for its European home-base.
The company boasts 75 5G contracts with various unique communication service providers, with 24 of them already live. Ericson is one of the many companies that believe that 5G standardization will serve as a cornerstone of world digitization. Thus, the company has taken many steps to develop its 5G services properly.
Verizon Communications Inc. (VZ)
Verizon is yet another well-known name within the telecoms industry. Recently, the company launched a 5G Ultra Wideband Network within specific locations spanning across 19 US cities. The company is making plans to expand that number to 30 by the end of this year. The company shows a lot of staying power, controlling much of the 5G spectrum bands in the US. These stocks will have staying power for years to come.
Images courtesy of T-Mobile, CrownCastle, Qualcomm, Ericson, Verizon, and Flickr @GotCredit.