It may seem distant, but there was a time before we could stream content, store data in the cloud or use apps on our phones. We had no idea such functionality existed in our future. Currently we are at a similar inflection point as we await the arrival of 5G technology. What new efficiencies and capabilities will it bring?
Wireless technology speed accelerates over time
• Wireless technology evolves in “generations,” with each generation providing faster speeds and greater capabilities. As with so many other technologies, wireless improvements have accelerated over time with the upcoming generation representing an increase in speed of nearly five million times the first wireless service (see Alger whitepaper The Enduring Force of Innovation).
• 5G will begin a widespread rollout in 2019. It will enable a ubiquitous network that parallels the speed of a desktop with a higher and faster ability to compute and transfer data. It will also further enable the Internet of Things in which devices communicate with other devices, helping remote patient monitoring, autonomous driving and smart city wireless infrastructure monitoring to become realities.
• The evolution of 5G is likely to cause dramatic change. Some estimates are for 5G to create $275 billion in new investment and three million new jobs. Potential investment opportunities include companies whose products are instrumental in creating the new infrastructure 5G will require: semiconductor and semiconductor equipment companies as well as wireless tower and bandwidth infrastructure providers. While we can forecast some of the impacts of 5G, its broad effects on consumers, business and the economy are likely to transform our lives once again.
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