​Jeff Kagan: Wireless and Telecom Growth Under Trump

Jeff Kagan |

Photo by Chuck Coker & Michael Vadon

In a recent speech and countless media interviews, I have been saying we should expect growth for wireless and telecom under President Trump. In fact, the next few years may show explosive growth, but that growth will often look much different. AI, the Cloud, IoT, VR, Connected Cars, Smart Cities, Smart Homes and so much more will all grow and transform our world in the next decade. And Trump will not stand in the way - I think he will only magnify this next growth wave.

Sure, the road to growth and innovation will be bumpy, especially in the first few years as we transform our trajectory as a nation, but I see an amazing time ahead, for those who are ready to jump in.

While there is no way to predict the future, I believe we can learn quite a bit by studying history and applying it to today. That said, things are starting to feel quite a bit like thirty-years ago under President Ronald Reagan.

Amazing Time Ahead for Growth and Innovation in Wireless and Telecom

President Ronald Reagan had quite a big cleanup job after President Jimmy Carter. It took a few years to really see growth, but we did. Many were surprised, but we saw healthy growth that benefited us all. And when we did, we were unstoppable for the next decade or two.

That’s what I see starting now. The industries were already beginning an important change wave. This wave looks like it may be accelerated and become a growth wave under Trump. That would be welcome for every one of us.

Wireless and Telecom Are Already Changing

Things are changing anyway. The wireless world has grown over the last decade because of smartphones like the Apple (AAPL) iPhone and Google (GOOG) Android. However, that growth is slowing.

Growth tomorrow will come from new areas. Traditional wireless players like Sprint (S) and T-Mobile (TMUS) will continue to grow in the wireless space, making up for the last decade. But the giants like AT&T (T) Mobility and Verizon (VZ) Wireless will transform themselves going forward.



AT&T and Verizon will continue to sell traditional wireless services, but they are also expanding into new areas. Take a closer look and you will see some of what we can expect going forward. AT&T acquired DirecTV and created wireless TV or mobile TV. That means their customers can watch TV on their smartphones and tablets, on the AT&T Mobility wireless network, anywhere in the country. This is starting a new growth wave that every competitor will follow.

AT&T, Verizon, Sprint and T-Mobile Already Transforming

This is impacting and transforming every wireless customer and competitor. In fact, it's sending Comcast (CMCSA) Xfinity and Charter (CHTR) Spectrum back to the drawing board to come up with a competitive answer. And I expect more of this kind of innovation from AT&T when they merge with Time Warner (TWC).

Verizon has acquired AOL and wants Yahoo (YHOO). They want to become a marketing company helping other companies reach their customers through advertising. This is their plan, along with operating a wire line and wireless network and customer base.

However, they must compete with others like AT&T, so they are now considering entering the cable television space through acquisition of a company like Charter.

Transformation is already happening with wireless networks and handset makers. Expect this wave of change to continue and to accelerate. Will yesterday’s leaders remain tomorrows leaders or will they be replaced? Who knows? But simply asking the question means we can expect rapid growth and transformation.

Enormous Growth Opportunities for Investors, Workers and Users

This is just one example, but this shows how we are in the early days of transforming every industry and every product. This creates enormous growth opportunities for investors, workers and users.

There are countless other examples. Next week, I will be attending the IoT Evolution Expo in Fort Lauderdale, Florida and will meet with many executives and companies who want to show me how they are growing and transforming themselves, their industry and creating enormous growth opportunities going forward. Yes, we are entering an exciting time in many different industries.

IoT Evolution Expo, IoT, Cloud, AI, VR, Connected Car, Smart Cities, Smart Homes

Consider IoT, the Cloud, AI, VR and so much more. They are all new. They are all transforming different industries. They are all rapidly growing. This is becoming a very exciting time for growth. However, you must be awake and alert to take advantage of the opportunity.

Change and innovation are happening. Trump is only going to accelerate the opportunity every one of us have right now. This may take the same growth path as it did in the 1980’s and 1990’s. So, are you an investor or worker or user? If so, are you ready for the transformation wave that is just beginning? That’s the real question.

Jeff Kagan is an Equities.com columnist. Kagan is a Wireless Analyst, Telecom Analyst, Industry Analyst, speaker and consultant. He follows wireless, wire line, telecom, Internet, cable TV, IPTV, Cloud, Mobile Pay, FinTech and communications technology. Email him at jeff@jeffKAGAN.com. His web site is www.jeffKAGAN.com. Follow him on Twitter @jeffkagan


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
TWC Time Warner Cable Inc n/a n/a n/a 0 Trade
AAPL Apple Inc. 159.76 -0.12 -0.08 11,863,664 Trade
S Sprint Corporation 7.08 -0.07 -0.98 4,900,382 Trade
TMUS T-Mobile US Inc. 60.75 -0.22 -0.36 536,749 Trade
VZ Verizon Communications Inc. 48.23 0.14 0.29 4,545,778 Trade
GOOG Alphabet Inc. 990.91 -1.10 -0.11 815,676 Trade
T AT&T Inc. 36.00 -0.17 -0.47 8,275,677 Trade

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