4 Telecom Stocks To Buy As 5G Network Revs Up Sector

A growing U.S. economy speeds up the demand for real-time voice, data, and video manifold. The escalation in demand has encouraged telecom service providers to undertake large network extensions while upgrading plans.

The next-generation 5G Network will be a major driver for telecom operators going forward. Consequently, it will be lucrative to invest in telecom service provider stocks with a favorable Zacks Rank.

Advantage of 5G Wireless Network

The United States is progressing well to lead the world in 5G — the next generation of wireless connectivity — which will enable faster speeds and low latency wireless broadband services. Although 5G network is not likely to replace existing 4G standards on large scale before 2020, several telecom behemoths are expected to launch 5G smartphones in 2019.

5G is widely believed to be smarter, faster and more efficient than 4G. It promises mobile data speeds that far outstrip the fastest home broadband network currently available to consumers. Data transmission speed of 5G network can go up to 100 Gbps, which will be 1,000 times faster than 4G standard. As a result, an entire HD film can be downloaded in less than a second using 5G network.

The rising demand for technologically superior products has been a silver lining for the telecom space in an otherwise tough environment. In this respect, the superfast 5G mobile networks will be of utmost necessity in managing the exponential growth of internet-connected devices, popularly known as the Internet of Things (IoT).

5G Wireless and IoT Market Sizes

Per Reuters, global 5G wireless market size will reach $1,271 billion by 2025. The market will grow more than 49.1% over the period 2018-2025. DELOITTE Global has predicted that 25 telecom operators will launch 5G in 2019 and 26 others will follow suite in 2020. About 20 vendors will launch 5G-enabled smartphones in 2019 and over 1 million 5G handsets are likely to be shifted this year.

Moreover, research firm IDC predicted that technology spending on IoT will reach $1.2 trillion by 2022. Research firm Bain estimated that combined IoT market size will reach $520 billion in 2021 from $235 billion in 2017.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this ...

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