- UK government launched a £30 million competition of 5G network building.
- According to the GSM Association, 5G network is expected to have 7 billion users worldwide in the next five years.
5G technology is once again in focus after the UK government launched a competition for 5G network building. This £30 million competition aims to turn the nation into a leading global destination for developing the next-gen 5G networks.
5G networks is a successor to the existing 4G cellular network, which we are currently being using. In simple terms, the fifth-generation standard is an upgrade to a 4G network, which will have greater bandwidth, giving high download speeds up to 10 gigabits per second.
According to the GSM Association, 5G technology is expected to have 1.7 billion users worldwide in the next five years. Besides providing mobile cellular internet, 5G will also help access new generation internet of things devices.
The UK government is working on fast-tracking the 5G network in Britain and said that through 5G connectivity, it aims to digitally transform many sectors, providing significant economic benefit for the country.
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Let us discuss five listed 5G players who are likely to benefit with the development and the technological progress:
BT Group Plc (LON: BT. A)
Formerly known as British Telecom, the company is a leading telecommunication and network provider. The company has operations in over 180 countries, and it is one of the largest mobile and broadband service providers in the UK. The stock is a constituent of the blue-chip index FTSE100.
The company’s wholly-owned subsidiary Openreach has recently announced a special offer for its wholesale communication service provider, who commit to using its full-fibre broadband technology. The offer will provide pricing certainty for up to 10 years with a single national rental price for the entire Openreach FTTP footprint.
For the year ended 31 March 2021, the company reported revenue of £21,331 million, down by 7% compared to the year 2020, primarily due to the impact of Covid-19. The company secured 80 MHz of 5G spectrum in Ofcom's auction for £475 million, allowing it to position itself as the UK's number one 5G network provider. In addition, the company has a base of 3.2 million 5G ready customers and a 5G presence in 160 locations.
BT Group shares at a closing price of GBX 189.65 as of 7 July 2021 has given its investors a return of 77% in the last one year.
Spirent Communications Plc (LON: SPT)
Spirent provides communication and network testing solutions for different companies. It operates through the networks & security, and lifecycle Service Assurance segments. The company has a global presence and provides its service in more than 60 countries.
The company has recently concluded a USD 55 million acquisition of US-based wireless test solutions provider octoScope Inc. 5G technology adoption is a big business opportunity for the company, and its security and testing business is anticipated to benefit as 5G technology gets adopted worldwide.
Spirent Communications shares at a closing price of GBX 266.80 as of 7 July 2021 has given its investors a return of over 8% in the last one year.
Vodafone Group Plc (LON: VOD)
The British multinational company provides communication services worldwide and has operations in more than 22 countries. Its enterprise business division provides telecom and IT solutions to the cooperate clients of over 150 countries.
European countries are the primary market for the company, with Germany being the largest market after the acquisition of Liberty Global. Vodafone has already rolled out 5G services in over 100 cities of eight European countries. The company has recently announced that its entire European operations are now powered by electricity from renewable sources.
Vodafone Group shares at a closing price of GBX 119.08 as of 7 July 2021 has given its investors a negative return of around 6% in the last one year.
Ethernity Networks Ltd. (LON: ENET)
The company provides FPGA based technology solutions to the telecom, mobile, cloud equipment manufacturers and system integrators. It serves clients from Asia, Europe and the United States.
Ethernity Plc recently received an order of $2 million from Tarana Wireless to supply the company’s ENET products. The company’s suite of products helps in the quick deployment of 5G and edge computing and IoT.
Ethernity Networks shares at a closing price of GBX 48.50 as of 7 July 2021 has given its investors a return of over 133% in the last one year.
Filtronic Plc (LON: FTC)
The company design and manufactures radio frequency (RF), microwave and antennas products for telecom companies worldwide. The company also provides interface and transceivers modules for the 5G XHaul applications.
The company recently received a follow-on defence contract to manufacture advanced radar modules. Also, the company saw a sale growth for its 5G XHaul product in the year 2020.
Filtronic shares at a closing price of GBX 11.50 as of 7 July 2021 has given its investors a return of over 45% in the last one year.