Andrew Willis: A few dips notwithstanding, we’ve enjoyed a decade-long bull run, that has in part been fueled by the boom in technology. But now, we have too much traffic on our current 4G mobile pathways. Where do we go from here? Enter 5G – a 10-fold speed increase, and a much-needed data superhighway. In fact, the World Economic Forum says 5G will unlock 13 trillion U.S. dollars in economic value by 2035.
And, it’s ESG friendly, because the speed, reduced cost and volume of data from 5G support several U.N. sustainable goals, says Moin Syed, the manager of Technology, Media and Telecommunications Research at Sustainalytics.
Plus, 5G wireless data enables the growth of many other impactful innovations, like artificial intelligence and the Internet of Things, and also helps improv scientific research, operational efficiency and sustainability of industries – all vital for the growth of developing – and developed – markets.
In Canada, 5G deployment is in its nascent stages – Rogers Communications (RCI.B) has already started to activate its network in January using a network from Ericsson, but other telcos will likely be delayed until the Canadian government issues a final decision on whether we can use 5G equipment from Chinese provider Huawei.
When it comes to investing in firms with 5G offerings, Syed warns that success is not a given and improvements will take time. He likes Cisco Systems (CSCO) for its 5 billion dollar commitment to 5G deployment, and strong talent and quality management systems that could see it becoming an important partner in the 5G ecosystem.
Next time you’re browsing on your phone and you’re waiting for a website to load, consider the positive impacts – and opportunities – when waiting for information becomes a thing of the past.
For Morningstar, I’m Andrew Willis.
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