4 Best Performing Wireless Equipment Stocks In 2017

Massive Spectrum Deployment by Carriers

As wireless networks run on radio frequency, spectrums (airwaves) have become the most sought-after commodity in the industry. T-Mobile US (TMUS) has aggressively started deploying 600 MHz low-band airwaves. In 2018, AT&T (T) will deploy 60 MHz of fallow spectrum and 600 MHz low-band spectrum coupled with its ongoing network densification project.

Comcast (CMCSA), the new entrant in the wireless field, acquired 73 licenses in the band of 600 MHz auctioned by the FCC. We believe that in the future Comcast will deploy this spectrum for extensive wireless coverage.

The market for U.S. public safety network for first responders and civil protection services is becoming intensely competitive. AT&T will install its FirstNet project to build and manage the first nationwide broadband network dedicated to the country’s police, firefighters and emergency medical services.

The company is expected to spend around $40 billion over the life of the contract to build, deploy, operate and maintain the network. Moreover, Verizon has announced plans of dedicating network capacity to emergency services providers. The company will make Band 14 devices available and ensure full interoperability with any Band 14 radio access networks (RANs) deployed by FirstNet.

Strong Growth of Service Provider Routers

Massive growth in mobile device usage has heightened transportation of data traffic substantially. In order to manage this burgeoning demand for photo, video and online data services, telecom operators are required to install more routers to ensure smooth transfer of data packets.

Routers are telecom infrastructure devices used to deliver data packets from one network to another. These are located at gateways, places where two or more networks connect. Per the IDC estimate, in 2017, the aggregate market size of the service provider router and carrier Ethernet switch will surpass the 2016 figure of over $13 billion.

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