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The Investment Case for 5G

The Blue Water Team

The advent of 5G technology holds great promise. With faster speeds, functionality, and data processing, 5G could transform productivity and performance in everything from healthcare to gaming, retail to education. 

The creation and implementation of 5G infrastructure has advanced steadily in recent years, thanks to the combined efforts of governments, telecommunications industries, and hardware firms. Supported by foundational LTE networks and driven by the rise of virtual networking and mobile device usage, 5G technology is on the verge of dominating the telecommunications field. 

5G holds significant market, and investment, potential because it is uniquely positioned to meet needs across industries. Recognizing this ability, telecom companies, industries poised to benefit from 5G, and even the United States government and the European Commission (among other international governments) are devoting resources to the development of 5G infrastructure.

5G technology builds upon previous developments (1G, 2G, 3G, 4G) to enable advances such as Internet of Things (IoT), virtual reality, and autonomous driving. 

Currently, 5G technology is defined as technological advancements in the telecommunications field that include the following:

  • New bandwidths
  • Utilization of antennae stations to deliver the 5G signal
  • Multiple Input Multiple Output cellular antennae stations built to a large scale
  • Route planning for data streams
  • Technology that allows antennae to both send and receive 5G signals 

5G technology is far more than a pipe dream. Currently, telecommunications giants such as Sprint, T-Mobile, Verizon, and AT&T are rolling out networks that either provide 5G networks or provide the foundation for 5G to hundreds of millions of Americans. 

The development of 5G technology and infrastructure continues to advance, putting further breakthroughs and applications within reach. 

Three of the biggest of these applications of 5G technology include the following:

  • Efficient cellphone coverage by networks with greater capacity and speed
  • Rapid scaling of the IoT, leading to a dramatic increase in interconnectedness among devices
  • Support of critical applications that make achievements such as autonomous driving possible

These applications could lead to practical and transformative uses of 5G technology across industries, including:

  • Smart cars that could reduce accidents by 80 percent and fatalities by 60 percent
  • Power system smart grids that could integrate data sharing, smart thermostat usage, and more while using less power
  • Healthcare that could benefit from e-health advances made possible by the faster and more integrated data sharing allowed by 5G networks. 

Ongoing advancements in 5G technology are likely, but they will depend upon factors such as buy-in from affected industries, government support of private investment, and increases in consumer demand. Thanks to the potential of 5G to transform telecommunications and many other industries, it could make a promising investment choice for some investors. 

The Defiance FIVG ETF is a fund that invests in this technology.