5G Is Taking Over the World
The entire world is getting its hands on a groundbreaking technology.
Every week it seems like there’s a new company, country, or continent that’s investing in 5G technology. And for good reason!
We’re at the very beginning of a once-in-a-lifetime tech opportunity, and every week we’re learning more about the technology and how it’ll improve our daily lives.
5G technology is going to play an important role in the upcoming tech revolution. There are so many technologies that are on the verge of being released, but they need a network that is able to support them in order to function and survive. The entire world is going to be dependent on 5G so it can stay ahead and “up to speed” with other countries.
The Race Is On...
Currently, the U.S. and China are ahead in the 5G race. A report from IHS Markit suggested that North America had a clear advantage in the race for 5G leadership, with the U.S. expected to be the location of the world’s first commercial network later this year.
Analysts are expecting Asian networks to follow right behind the U.S. in 2019 and European operators to trail them with an estimated launch of 2021 or later.
All over the world, we’re seeing a substantial amount of money being invested in 5G. Some countries are spending more than others to strive to gain first place. China is one of those countries.
Joe Madden, Principal Analyst at Mobile Experts, said:
For most of the world, 5G deployment will be spread over many years and will solidify slowly over time. China is the exception; political forces are driving a huge nationwide deployment at incredible speed. We ran the numbers, and they will surprise most of the industry.
A Deloitte study shows that since 2015, China has outspent the U.S. by $24 billion on 5G technology. Despite being slightly behind the U.S., China is making really strong strides toward market leadership. The country is making a significant presence for itself in 5G because it knows the tech will be the backbone of all future technologies.
This competition toward 5G connectivity doesn't stop with the U.S. and China. Europe is also expanding its efforts.
Finnish telecom network equipment maker Nokia is making a mark in Europe. The company just secured a 500 million euro ($572 million) loan from the European Investment Bank (EIB) so it can continue its development of 5G technology. The next-generation technology will allow for faster speeds and the expansion of reliable coverage.
EIB’s vice president Alexander Stubb recently said:
We have to understand that China and the U.S. have moved fast with the 5G. It is very important to have European companies going in for this competition.
Earlier in the year, EIB signed a 250 million euro loan with Swedish company Ericsson for the purpose of developing 5G technologies. Europe is encouraging and supporting efforts in 5G tech.
Nokia snagged a $3.5 billion 5G deal with the U.S. mobile carrier T-Mobile. At the moment, this is the world's largest 5G agreement. However, I don't think that will last long. In the next few years, we're going to see a lot of record-breaking deals when it comes to 5G.
Companies and countries are nailing down any and all opportunities that’ll take them into this new tech revolution.
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Regardless of Who’s in the Lead, 5G Is Going to Be Huge
A recent report by IHS Markit is estimating that by 2035, 5G will have a $12.3 trillion global economic output. 5G is going to have a major influence on the global economy in such a short amount of time. And it is going to do a lot more than just give us faster speeds...
Access to 5G is going to spread across the globe. Economies want to experience the impact 5G will have, so they’re ensuring everyone will have access to the technology. Trade group GSMA reports that by 2025, 1.2 billion people worldwide are set to have access to 5G networks — and a third of those people will be in China.
Statista expects 5G to hit the market by 2020, and by 2021, the number of 5G connections is expected to reach between 25 million and 100 million.
5G will give you the opportunity to download a full-length high-definition movie in seconds instead of minutes. These statistics and expectations are great and all, but the fact is, technology users are already expecting these types of features today.
When I use any of my smart devices, if anything takes longer than five minutes, I lose interest and try to find something that won’t take so long to download.
And this is just one of the smallest examples of what we can expect from 5G technology. 5G is set to disrupt the entire tech industry. And these disruptions are going to surprise you!
If you're interested in learning more about the possibilities that lie ahead for 5G, my colleague Jason Stutman has been following this tech revolution, and he put together a resource for Wealth Daily readers that details even more about the technology, the companies that will be affected by 5G, and the investment opportunities that are happening right now!
Until next time,
Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.
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