Why 5G Will Transform Much More Than Telecommunications

Jafar Rizvi answers S. Clarke Moody’s questions about the impact of 5G.






Key Takeaways

 

  • The transition from 4G to 5G will allow wireless technology to surpass three technical thresholds: 1) wireless internet speeds will surpass cable broadband and potentially also fiber optic cable; 2) the “internet of things” will have mass industrial applications for the first time; and 3) communication lag will fall to one millisecond—faster than the speed at which humans perceive touch response as instantaneous—giving rise to new, “tactile internet” applications such as remote surgery.
  • As a result of these barriers being broken, the 5G transition will likely have a larger and broader economic impact than shifts between previous wireless generations.
  • Consumers have the most to gain from this transition, followed by network equipment suppliers, cellular tower companies, and connected device makers.
  • Telecommunications and media companies should stand to gain as well, though they will also face new challenges as content distribution changes, while cable TV companies will likely see their value proposition further erode.

Disclosures

 

The “Fundamental Thinking” series presents the perspectives of Harding Loevner’s analysts on a range of investment topics, highlighting our fundamental research and providing insight into how we approach quality growth investing. For more detailed information regarding particular investment strategies, please visit our website, www.hardingloevner.com. Any statements made by employees of Harding Loevner are solely their own and do not necessarily express or relate to the views or opinions of Harding Loevner.

Any discussion of specific securities is not a recommendation to purchase or sell a particular security. Non-performance based criteria have been used to select the securities identified. It should not be assumed that investment in the securities identified has been or will be profitable. To request a complete list of holdings for the past year, please contact Harding Loevner.

There is no guarantee that any investment strategy will meet its objective. Past performance does not guarantee future results.

© 2020 Harding Loevner