5G Revolution(Themes Trading)
The fifth-generation (5G) wireless market plumped the pockets of investors in 2021 despite pandemic-related delays to infrastructure buildouts and associated service deployments.
Mobile network operators remained committed to the technology — as did savvy investors. There were 290 million subscriptions to 5G in the first quarter of 2021, and a report by Ericsson expects that number to climb to 580 million by the end of the year. Even though it is still a new technology, its adoption rate is moving faster than that of 4G when you compare their first years of deployment.
Ericsson has forecasted that 5G will reach the one billion subscriptions milestone two years earlier than 4G. Smartphones have largely been recognised as the drivers of 5G adoption, with J.P. Morgan forecasting that 5G smartphone sales will reach 725 million in 2022.
Latest moves
The continued roll out of infrastructure and widespread adoption of 5G devices and services will accelerate the development and expansion of telecommunications, and boost the automotive, entertainment, manufacturing and computing sectors. We are in the midst of one of the most significant market opportunities of the next decade. German carrier Deutsche Telekom said more than 87% of the country’s households can now access its 5G network. Subsidiary T-Mobile announced it had reached its 2021 target of connecting 200 million people with a faster cellular network, six weeks ahead of its nominated deadline. The sector isn’t without its political pitfalls, though. The United States, United Kingdom, Australia and New Zealand have all banned or restricted Huawei’s involvement in their networks over concerns of Chinese espionage. Canada is delaying its decision on whether to work with Huawei, a move that has been criticised by the Chinese ambassador to Canada, Con Peiwu. India is still working on the rollout of 5G, with fresh delays announced that have pushed back the implementation of the technology until Q2 2022.
Outlook 2020
Far from phoning it in, 5G stocks will be climbing high in 2022. Spending on wireless infrastructure is on the rise to an estimated USD 23.2 billion, and the number of 5G-enabled smartphones is also expected to increase to 660 million. According to estimates, 5G will have generated 22.3 million jobs and USD 13.2 trillion of global economic output.
5G REVOLUTION THEME
ISIN CH0467720410
Valor 046772041
Symbol FIVETQ
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