Telecom Investments, 5G Investing Guide, BPR

By pjain      Published March 17, 2021, 6:29 p.m. in blog Business-Management   

5G Investing Tips, BPR

What is 5G

5G is a next-generation wireless network that will give you much faster internet connections. 5G – or fifth generation technology is penetrating telecommunications networks across the globe.

Massive 5G investments Globally

The wireless industry plans to invest $275 billion in 5G networks, creating 3 million American jobs quickly, and adding $500 billion to our economy - Trump, April 2020

Spectrum Auctions - Carriers Debt Load/$70b+ Bumps

FCC announced new spectrum auction that opens up 3,400 MHz of wireless spectrum for carriers to bid on.

FCC Rules and Regulations

At the same time, the FCC announced new rules that will make it easier to deploy next-generation networks, including hub and relay antennas, to spur the advancement of 5G.

Equality

The FCC also announced a $20.4 billion Rural Digital Opportunity Fund to bring faster 5G networks to rural areas

Applications of 5G

More Data, Faster

We've already seen breakneck growth in data consumption lately as consumers become even more addicted to their smartphones

5G promises much faster network speeds, which means heavy-duty content like video should travel much more quickly to connected devices.

Verizon’s 5G network in select cities is already providing speeds in excess of 1Gbps, or about 10 times 4G LTE common That means you should be able to download an hourlong high-definition video in seconds instead of minutes.

Better Wifi in conferences, Mobs, Crowds

The greater bandwidth of 5G means that more devices can use the network at the same time. This means it should alleviate problems at places like sports stadiums or concerts where thousands of people may be trying to place a phone call or upload a picture at the same time. In these instances, a network can get jammed up and stops working for everyone. 5G should prevent that from happening.

Lower Latency

The lower latency of 5G means that it takes less time for one gadget to talk to another.

Autonomous Cars, V2P, V2P

5G smart cities allow connecting to smart cars, since information needs to be delivered instantly. One day, 5G might be able to tell your car that someone is about to run a red light and that your car needs to slam on the brakes. In that sort of situation, you can’t have much delay in the network.

HAN

Everything from doorbells to dishwashers now have the ability to connect to your home Wi-Fi for added digital functionality. All these devices come with a real burden on networks.

M2M, IOT, Industry 4.0

Why 5G

5G devices such as the 2020 iPhones do things faster and more efficiently, share information quickly, watch videos, get texts, lower down times.

Unique Apps

  • Researchers in oncology to share information within a minute that might impact a study or a new drug or an outcome of a surgery.

Is it all Hype?

Timelines

The telecom sector is racing to keep up with this trend and support the digital economy of the future.

Deployment

  • 2020 - 5G 70 U.S. cities - but 4G LTE common is the "best" standard for "unlimited mobile share plans"
  • 2021end - 5G to 5,000 U.S. cities

5G Patents, Regulation, Tradewars, Cybersecurity

5G Patents

Apple recently ended a bitter, yearslong legal battle with Qualcomm mainly because the chipmaker manufactures some core 5G technology that Apple needs to make future iPhones competitive.

Huawei claims tens of thousands of patents including by far the majority of 5G global patents. It is threatening to start charging global companies for its IP.

US bans Huawei

Market Structure, Size

Top Companies - 5G Focus

SaaS for 5G, Edge

AKAM

GOOG

Google parent Alphabet (GOOG, GOOGL).

FB

Services, Consulting

AMDOCS

Qorvo

Handsets, Phones

AAPL - iPhone major 5G

Samsung

Huawei - major 5G

Carriers

T

5G is also a big topic as carriers are working to build out the faster networks now.

VZ

5G is also a big topic as carriers are working to build out the faster networks now.

TMUS

Sprint and T-Mobile have even used 5G to discuss the competitive landscape in an effort to get merger approval from the Justice Department.

VOD

Comcast Corp. (CMCSA)

Equip

ERIC

NOK

F5 Networks

CIEN

Ciena Corp

IOT

IOT is a network of physical objects connected to the web – from TVs and smartwatches to thermostats and doorbells.

GRMN

GPS giant Garmin

SWKS

Wireless communications company Skyworks Solutions

Semis, Test Equipment

AVGO

NXPI

QCOM

ADI

Maxim

MRVL

INTC

XLNX - acq by AMD

KEYS

Keysight Technologies, or Keysight, is an American company that manufactures electronics test and measurement equipment and software

  • FY'21 $4.3b

  • About : HQ Santa Rosa, 14k emps

REITs

Data-hungry consumers and businesses need data centers and physical assets that make up the "cloud". Most cloud-based data is stored in massive server farms.

SRVR etf

Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF

SRVR is a play on data-focused real estate companies A narrow niche as only 22 of these real estate related telecom plays are in the ETF, but with $1 billion in assets under management, and an expense ratio of 0.6%.

DLR

Digital Realty Trust

AMT

American Tower

CCI

Crown Castle International Corp

EQNX

Equinix

5G Investing Resources

VOX aum=$3b

Vanguard Communication Services ETF

One of the simplest and most liquid ways to play the 5G revolution. If you want to broadly play the fact that people are heavily reliant on data services and will only use more bandwidth in the future, VOX is an easy way to get exposure to the dominant names out there across both tech and telecom. The fund comes with a low annual expense ratio of 0.1%, or $10 for every $10,000 invested.

FIVG exp 0.3% AUM$1.15B

Defiance Next Gen Connectivity ETF - https://www.defianceetfs.com/fivg/

IYZ exp0.42% AUM ? Yield 3%

iShares U.S. Telecommunications ETF

This iShares telecom fund cuts out the Big Tech leaders like GOOG, Facebook (FB) and instead goes all-in on the actual service providers. so roughly 40% of the fund is in the two biggies of Verizon and AT&T (T).

IXP exp 0.46% Global includes US

iShares Global Comm Services ETF More Diversified. Include Asian internet powerhouse Tencent Holdings (0700.HK) among its top positions.

Still largely populated with domestic stocks, as North American firms represent about 70% of the total portfolio.

FTEC Cheapest exp 0.08% AUM 5.4b

VGT Exp=0.10% AUM $42B

BLOK Exp=0.71% AUM$1.3B

SNSR - IOT focus exp=0.68%

Global X Internet of Things ETF

CHIC exp 0.65%

Global X MSCI China Communication Services ETF

China as the world’s largest economy (GPP) was one of the swiftest deployers of 5G and has one of the most expansive 5G networks. China has outspent the U.S. on this front by more than $24 billion.

  • China Mobile (NYSE:CHL)
  • China Telecom (NYSE:CHA)
  • China Unicom (NYSE:CHU)

China's top three operators were expecting to operate nearly 130,000 5G base stations by the end of 2019. China Mobile announced plans to install 50,000 5G sites by end-2019, while China Unicom and China Telecom each target about 40,000.


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