Earlier this week the Schwab Network news program with Nicole Pettalides invited me on the show to discuss Verizon quarterly earnings. I took the conversation wider and deeper onto the changing wireless industry. I’ve been offering comment on the always changing wireless industry for more than thirty-five years. What is happening now is different.
Over time, we have all watched and learned as this industry continues to grow and change. It has times of vibrant and rapid growth, and other times of slow or moderate growth. It’s not a consistent flow, but over the long run it is nevertheless growth.
This next step looks similar, but also very different compared to traditional industry progression. Having an accurate understanding is key for executives, companies, workers, investors and the media.
AT&T, T-Mobile, Verizon offer primary wireless services
What is important to recognize is that today wireless is not only changing, but it is expanding and working with other technologies in new directions.
In fact, wireless is impacting other companies and other industries. Wireless is becoming a core component for growth in other new technologies like AI, FWA, 5G-Advanced and more.
This is true for the three major wireless networks AT&T, T-Mobile and Verizon, and for wireless pre-paid resellers like Visible from Verizon, Cricket Wireless from AT&T, Xfinity Mobile, Spectrum Mobile, Optimum, Pure Talk and so many others.
It is also just as important for equipment makers and network builders like Qualcomm, Ericsson and Huawei.
Xfinity Mobile, Spectrum Mobile, Optimum, Visible are wireless resellers
Even though wireless is not showing the same level of growth as it has in the past, it remains important and a key component for what our world is transforming into.
Wireless offers a way for many different and new technologies to reach everyone, business and consumer.
Senior level executives need to be visionaries in order for wireless to remain relevant and a growing industry. They need to not only be aware of the marketplace today, but where it is heading.
Some competitors are changing faster than others. However, in my opinion this is a direction all will have to move to at some point. The sooner the better.
Some companies and sectors are performing better than others in these new areas, but I will compare and discuss them in another column.
Wireless is moving toward AI, FWA, 5G-A
Wireless is changing. In fact, things in wireless have always been changing. This time however, the changes are deeper and wider than ever before.
Yesterday, as we moved to the next generation of service, it only seemed to impact the wireless industry, customers and apps. Every time the service sped up, what we could do would increase. Example, we could never watch live TV, audio or video several generations ago. Today, it is commonplace.
That progress continues moving forward.
- Today, we are increasingly using the smartphone to do everything.
- Yesterday, we had to carry our wallet, keys and smartphone.
- Tomorrow, all we will need is our smartphone. It will start the car, open our doors, have our ID, membership cards, credit cards and give us access to unlimited information through the web, texting, email, video and so much more.
Let’s take a closer look at several areas of growth.
5G-A is next level of wireless services for Qualcomm, Ericsson, Huawei
While traditional wireless growth seems to have slowed, the competitors are moving in new areas. Some are moving more quickly and more urgently compared to others, but the industry is moving in new directions.
5G-A is one of these areas. This is a faster and more immediate version of traditional 5G which has been being installed for the last several years. Qualcomm, Ericsson, Nokia and others call this 5G-A. Huawei calls their 5.5G. However, from what I can see, it’s all the same thing.
This is a growth opportunity for wireless networks and devices.
FWA let’s wireless carriers offer broadband competing with Cable TV
Fixed Wireless Access is a new technology which lets wireless carriers deliver a 5G wireless broadband connection to a fixed location like the home or office.
FWA is growing as a wireless carrier service, but still has its limitations. Some customers love it, while others complain about consistent speed or quality.
FWA is still new. Moving forward, this new technology will continue to improve.
This is a potential problem to the cable TV industry, which supplies a wireline broadband connection, along with the landline telephone companies or RBOCs. Expect them to respond to this threat.
This is setting up the next, new potential competitive battleground between wireless carriers and cable TV companies going forward.
As AI enters wireless, expect more features and intense competition
Artificial Intelligence is next. This is still a relatively new addition to the wireless space, but conversations I have had with many senior level executives at companies tell me the entire industry is moving in this new direction, and quickly.
Both networks, smartphone and tablet makers are all looking for new ways to introduced and continually increase AI into the industry.
AI will play a growing importance in the wireless world. Expect to see this move with Apple with their iPhone and iPad, Android with their Pixel, Samsung with their Galaxy and so much more. Also, with Qualcomm and others in the network building space.
Initially, AI will play a smaller more measured role. However, as we move forward, I expect the role of AI to increase. As speeds and intelligence continue to grow, our understanding of AI will do the same.
AI will encompass wireless networks, smartphone and tablet makers
Bottom line, even though wireless growth is continually changing and growing, this time it is doing so in new and different directions.
Plus, as new technologies are introduced like AI in the coming years, I fully expect to see wireless growth increasing in many new directions.
Remember, wireless has always been and will continue to be one of the strongest, core technologies we will use to build tomorrow.
Wireless is still a solid and important technology and will continue to be so, even though the growth path may shift from time to time, as it has always done over the decades.
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