Summary
- 5G networks and the Internet of Things will increase mobile data usage across the globe.
- Wireless carriers will need to update and densify their networks to support the increases in connected devices and data usage.
- American Tower owns/operates telecommunications real estate in 19 different countries.
- American Tower is well positioned to capture value created by 5G and the Internet of Things.
Introduction
In the coming years, 5G networks and the Internet of Things (IoT) will be significant growth drivers of mobile data usage. As one of the largest competitors in the telecommunications real estate market, American Tower (AMT) and its shareholders are well positioned to capture value from these technologies.
In addition to being 10-100x faster than 4G, 5G will allow wireless networks to accommodate more devices transmitting real-time data. For this reason, the IoT is expected to experience rapid growth as 5G is deployed.
These innovations have the potential to transform the world in countless ways, some of which haven't even been imagined yet.
Healthcare:
Wearable devices could allow for better monitoring and management of various health conditions. Advanced robotics with real-time data transmission could allow doctors to perform procedures remotely.
City Infrastructure:
Connected roads could process traffic and weather conditions. Connected streetlights could reduce energy consumption. Connected sensors could monitor environmental conditions, such as air quality.
Transportation:
Connected cars, buses, trains, et cetera, could reduce accidents and provide travelers with real-time information.
Other:
Connected machinery could improve safety and efficiency in manufacturing and construction. Augmented and virtual reality could be used in classrooms to enhance the educational experience.
These examples just scratch the surface of how 5G and the IoT could change daily life. But in order for any changes to be realized, there must be wireless networks capable of supporting the increases in connected devices and data usage. For this reason, I believe American Tower is a compelling long term investment idea.
