Tactical US Themes Monthly
Comment of the Day

November 04 2021

Commentary by Eoin Treacy

Tactical US Themes Monthly

Thanks to subscriber for this report from UBS which may be of interest. Here is a section:

Applications for 5G are expected to include autonomous driving, the massive internet of things (IoT) and telemedicine, mobile and fixed broadband, among others.

• Investor perceptions of 5G are tracking prior cycles of early excitement followed by skepticism. While there are certainly technologic and economic hurdles to overcome, we view the global 5G build-out as inevitable and see the current sentiment as an attractive opportunity.

• The 5G build-out will take a number of years before consumers fully realize its benefits. However, we believe the “inevitability” of 5G relative to investor skepticism creates an attractive opportunity in companies leveraged to infrastructure. We believe infrastructure companies will benefit from 5G before smartphone-focused companies.

Eoin Treacy's view

The big difference 5G offers over existing infrastructure is that it eliminates lag. One of the limiting factors behind current wireless technology is the time it takes to upload a file versus downloading it. That slows down two-way communication. Anyone who had ever played an online multiplayer game is familiar with lag because one’s character can hang on the screen while the connection tries to catch up with the activity. During that time you often end up getting killed by someone with a better connection.

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