AT&T Bringing 5G Nationwide This Summer: Jeff Kagan

AT&T is focused on bringing its 5G wireless network nationwide this summer. This will bring not only 5G speeds, but low latency, which means an immediate communication. This will not only help the wireless industry continue to grow, but it will also empower other industries to move toward wireless in new ways.

Let’s take a look at the evolving 5G wireless industry and all the changes for which AT&T is preparing as it has grown in recent years.

The 5G wireless revolution is both the same and different compared to previous generation shifts like 2G, 3G and 4G. In fact, 5G is one of the most exciting things we have seen in this industry since its inception decades ago.

5G wireless will transform the wireless industry in both speed and latency

Just like we saw new thinking from traditional industries of companies like Uber and Lyft as they transformed the taxi and limousine industry with 4G, I expect similar changes in other industries as we move forward to 5G.

We must widen our vision and increase our expectations. 5G will not only be a revolution in the wireless industry, but because of the speed and the low latency, it will be a revolution in every other industry as well.

In fact, it will not only improve existing industries, it will also create new industries in which to invest.

We have seen wireless speeds increase year after year for decades. Every eight or nine years or so, the networks evolve to the next level in speed and features.

This means we will see 4G continue to get faster even as 5G is rolling out in market after market.

5G will empower new industries like TeleMedicine and Autonomous Vehicles

This will not only impact the wireless industry, but nearly every other company in nearly every other industry as well. We see how 5G is impacting TeleMedicine and TeleHealth. We see it impacting self-driving cars and autonomous vehicles.

We also see other industries working with 5G companies to help them transform to their next generation and changing competition. Industry after industry will transform using 5G wireless over the next decade.

So, 5G is not only an enormous growth opportunity for wireless carriers, smartphone and tablet makers, 5G network builders, but also for other companies in other industries as well.

That means the wireless industry will grow in importance in all these areas. It will become the center of the universe of our civilization as we move forward. That is very exciting.

The growth opportunity AT&T is pursuing with 5G

AT&T sees this opportunity as well. That’s why it is focused on growth starting not only with its 5G wireless activity, but also expanding to include other businesses as well.

Each of these other businesses will be a stand-alone player in its space, and each will also be connected to AT&T Mobility, AT&T TV, HBO Max, AT&T Internet and more.

In fact, AT&T has spent the last several years focused on this growth opportunity. Some slices of this new pie are growing faster than others, but all are important and will remain that way for years to come.

You see, companies cannot just focus on the high-growth areas and hope for success. Instead, companies must have a variety of products and services which use each other to provide content and connectivity to the user, whether that be the consumer or business customer.

Every service does not have to be profitable by itself to be necessary

Every service does not have to be profitable to be necessary. Companies which offer many different services understand some of them are more profitable than others, but all are necessary to the bigger picture of success.

Let me give you another example. Comcast Xfinity now owns NBC Universal, Xfinity Mobile and its broadband service. All of them work together to create a successful and growing company.

In fact, Comcast’s primary business is no longer cable TV. It is Internet. And its wireless business, Xfinity Mobile, while not profitable, is still a necessary piece of the Comcast puzzle.

Create a sticky bundle to keep and grow market share

You see, as it continues to grow using all these different services, Comcast creates a sticky bundle to keep customers.

So, even though Xfinity Mobile may not be profitable, Comcast will not cut it loose because it adds value to the bigger picture. It helps the company create a sticky bundle of services, and that reduces customer churn.

This is what AT&T is doing with its growing variety of services. The company is focused on expanding its footprint and growing. In recent years, AT&T has acquired DirecTV, Time Warner, Warner Brothers, CNN and so much more.

AT&T TV, HBO Max, WarnerMedia, Warner Bros., wireless and telecom

Now AT&T is rebranding its assets and creating a new kind of company. It is no longer just a wireless company or a telephone company, but these are important slices of the pie along with being able to deliver television and entertainment over the wire line and wireless connection.

This larger group of services helps the company create a sticky bundle of services to help both maintain and grow market share. And the multiple services help AT&T grow in a larger variety of businesses. This diversification is also healthy as we have seen with other companies like Apple, Google and Microsoft.

WarnerMedia, AT&T TV, HBO Max and so much more are positioning AT&T for growth on a wider scale than any of their existing and new competitors.

John Stankey, new CEO of AT&T, sees growth ahead

That growth in positioning takes time. Now under new CEO John Stankey, AT&T is rolling out its next generation of advanced services which will transform the entire industry.

AT&T has two groups of competitors. Looking at the core of AT&T with wireless, wire line and Internet, the company competes with the likes of Verizon, T-Mobile, CenturyLink and others.

Looking forward, with its wireless, telecom, Internet, AT&T TV, HBO Max, WarnerMedia, CNN news, entertainment and more, AT&T will compete with Comcast Xfinity, Peacock, Disney+, Apple TV+ and other companies who will enter with a full set of services or even just one.

Today, AT&T and Comcast are the only two direct competitors. Others are competitors in the streaming TV space or wireless only. But this is the way the industry continues to grow and to change.

Looking backward, we see the industry as it was. It is still doing business and is still an important growth industry. Looking forward, we see the next generation of the industry.

That means for now, investors must look at these two competitive groups. One with other wireless, telecom and Internet players, and the other with news and entertainment players.

As the world changes, we are entering a very exciting and unknown future. AT&T is positioning itself to be a leader in this new space.

Jeff Kagan is an Equities.com columnist. Kagan is an Industry Analyst, Thought Leader, Key Opinion Leader and Influencer focused on Wireless, Telecom, Pay TV, Cloud, AI, IoT, Tele Health, Healthcare, Automotive and Self-Driving cars. Email him at [email protected]. His web site is www.jeffKAGAN.com. Follow him on Twitter @jeffkagan and LinkedIn www.linkedin.com/in/jeff-kagan/

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Equities Columnist: Jeff Kagan

Source: Equities News