We are always looking for the next hot stock or sector to invest in or to do business with. The wireless and telecommunications industry has always been a rich source of innovation and new ideas. So, let’s take a closer look at some of these hot, new growth sectors and some of the companies to keep an eye on as an investor, customer or worker.
First, it’s important to understand that hot, new growth technology comes from many different areas.
New tech like 5G, AI and Chatbot like ChatGPT are a good example. These new technologies are changing everything. They capture the imagination and interest of investors, regulators, users, the media and the public in general.
Other new ideas come from changing existing sectors. Many previously hot areas are finding the customer moving to the next, new technology.
As growth in older sectors slows, it moves to the next area. During that time it changes the economics and needs of existing industry players, customers and so on.
New growth opportunities and competitors in wireless, telecom
So, as one sector grows, then crests and ultimately slows, it creates a void, which is a new opportunity for new competitors with new ideas.
The telecommunications industry has been around since Alexander Graham Bell made the first phone call in the 1800’s, or when the first wireless call was made in the 1970’s.
The wireless and telecom industry has grown and changed dramatically, time after time, over decades.
With every new growth wave, new thinking, new technology and new competitors enter the space. At the same time, older and existing technology faces pressure to update or fade away.
That’s why it is always important to have a solid understanding of where we have been, where we are today and the direction we are heading.
Wireless industry remains strong growth engine, but changes over time
Wireless is one of the strongest growth engines of all time. However, the growth path of wireless as an industry has gone through decades of change since its creation decades ago.
Wireless industry leaders back in the 1980’s are very different from those in the 1990’s, and today as well.
Over time, growth waves of change transform the industry, create new leadership and sending past leaders to the back of the line, virtually overnight.
Think about how wireless has moved from analog to digital, then from 2G to 3G to 4G and now to 5G. Growth waves will continue with 6G and more going forward.
Wireless industry leadership continually changes as time passes
Within each of these growth waves, there were always leaders, and these companies change over time.
Example, Motorola led the wireless space for decades until they lost their way in the 1990’s. They were then replaced by Blackberry, Palm and Nokia, who led the industry for the next decade.
Then, about fifteen years ago Apple iPhone, Google Android and Samsung Galaxy entered the marketplace and changed the industry. Apps grew from a few hundred to millions. Speeds and low latency were improved dramatically.
This puts pressure on all the other industry players like Sony, LG, Motorola, Nokia and more who struggle to regain their position in the space.
All this says is industry leadership can and often does change in an instant. That being said, new technology is opening new growth opportunities.
5G remains solid growth opportunity for Qualcomm, Huawei, Ericsson
5G has been with us for the last several years and it is still one of the strongest drivers in the wireless industry.
Companies like Qualcomm, Huawei, Ericsson, Nokia, ZTE and others in the networking side help companies like Verizon, T-Mobile, AT&T, US Cellular, C-Spire and many smaller wireless carriers.
While networks continue to improve their 5G capabilities, there are still many more years ahead, so this will remain one of the strong growth sectors.
Next, 6G will come along. So this gravy train really never ends.
Private wireless services from Verizon, T-Mobile, AT&T
Private wireless is an important and growing sector. Enterprise customers are going wireless at a fast rate.
Public wireless networks like Verizon, T-Mobile and AT&T are not up to the standards private enterprise customers both want and need.
You see, private wireless puts control in the hands of the customer. This means more security and private and control, without the problems of a busy network filled with the general public.
So, private wireless is catching on with the enterprise customers. It is becoming a real growth sector in the industry.
There are different segments of the private wireless space.
Public wireless players like Verizon, T-Mobile and AT&T are now offering their own, private wireless services. This is designed for this new sector. It offers more benefits for the enterprise customer, however it has limits and carrier controls.
Private wireless Qualcomm, Betacom, Cradlepoint, Juniper Networks
There are other companies which offer private wireless as well. In fact, there are many different types of services customers can buy based on their preference and need.
This flexibility lets the enterprise executives control their wireless experience.
Qualcomm is partnered with Betacom, whose 5G-as-a-service is a solid service this rapidly growing space. This gives them both growth opportunities while staying in their lanes.
Ericsson Cradlepoint is another competitor in this space. As are NTT, Juniper Networks, Nokia, AWS, Celona, Boingo and others to various degrees.
Some companies call their offerings private wireless. Others do not. Yet, they all seem to be in competition with each other.
Based on what I see today, private wireless should continue on its current growth trajectory. It is strong and should last for years going forward.
How 9-1-1 Emergency services are changing
As new technology evolves, it transforms our world. Customers move from one sector to another like moving from landline to wireless services. This momentum puts real pressure on service providers to maintain the level of service customers got used to in yesterday’s landline world.
Think about it. As users increasingly get smartphones, smart watches, tablets, exercise trackers and other wireless devices, each of these has its own operating system or OS.
That means each mush have its own access to emergency services or operator services or directory assistance.
This presents many new challenges for networks and device makers.
Since we are seeing an explosion of new devices, we are also seeing device makers or service providers racing to meet the customer needs and expectations in this area.
The FCC is asking companies to focus on and solve this growing problem created by all the new technology.
Competition will be the real pressure. As competitors offer these advanced emergency services, other competitors must follow, or they will lose market share.
Emergency services on networks, devices Apple, Android, Samsung, Viiz
Many companies are focused on this as a challenge and a growth opportunity.
Apple now offers satellite connectivity on their new iPhone. This works even if you are in the middle of nowhere, like the desert or in the middle of the ocean, and without cell service. It lets you reach out and connect, to get emergency services anywhere you can see the sky.
Viiz Communications offers Emergency services to networks. Think Verizon, T-Mobile and AT&T and countless smaller competitors and resellers as well.
Carriers must be proactive and improve emergency communications between 9-1-1 centers.
There are a wide variety of companies who increasingly need this kind of Emergency Service upgrade. Think wireless competitors like Cricket Wireless, Visible, Xfinity Mobile, Spectrum Mobile, Altice wireless called Optimum, Pure Talk and so many others.
In fact, Verizon uses Viiz to connect their Apple Watch to emergency services. This is the kind of Emergency connectivity every device and every competitor need to offer to every customer.
Emergency Services will remain a behind the scenes growth sector, as every device and every network need to offer services like these to their customers for competitive reasons.
Emergency Services becoming a competitive advantage
Emergency Services should remain a competitive advantage for the next few years, until we get to the point when all competitors and all devices are covered.
So, as you can see, the wireless and telecommunications remains a growth industry. That being said, things are changing. Then again, things have always been changing.
It is also important to recognize this does not mean every company in every level of the private wireless sector will be winners at the same rate. It is still up to the company, the executives, the products, the services, the pricing, the marketing and positioning, the partners, the competitive position and so much more.
Growth waves rise, crest then fall, and are replaced by next wave
Growth is an ongoing process which changes over time. New ideas grow, then crest, then fall. Then they are replaced by the next growth wave.
Investments, new services and new technology are a real competitive advantage for a while. Then as all competitors move in it simply becomes a cost of doing business.
Growth in the wireless and telecommunications industry has been rising and falling, over and over again for as long as we can remember.
Companies, technologies and sectors rise, change. They rise, crest then fall. Then they are replaced by the next growth wave which does the same thing, over and over again.
So, keep your eyes open for changing technologies and new competition to know which companies and sectors to invest in and to do business with.
