How the Stock Exchange can be attracted by 5G technology?

18.03.202116h31 Julian Alexienco Portillo

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How the Stock Exchange can be attracted by 5G technology?

With the arrival of the 5G technology planned for Brazil in 2022, based on Anatel's approval of February 25 of this year, the auction notice for the frequencies will make available to those who decide to participate in the auction, many resources for expanding their networks.
According to the magazine RTI (Networks, Telecom and Facilities), research shows that, despite the Coronavirus pandemic, more than 30% of the countries in January 2021 have 5G technology available and a growth of about 350% compared to 2019.


The new technology will not only improve the mobile phone system, but also the traffic of autonomous cars, distance medicine, distance learning, home appliances connected to the internet and much more.
Investment in the area, not only from operators, but also in infrastructure and services companies, will increase significantly. World Bank data on the impact of 5G forecasts global economic growth of around US $ 13.2 trillion / year by 2035.


Given this expectation, operators, manufacturers of mobile phones, vehicles with autonomous technology and home appliances should gradually be launched and replaced by Brazilian and global consumers.
Movements in Brazil such as Oi's renouncing the mobile network and focusing its investments in fiber optic network infrastructure, the heart of 5G, can take the company, from a financial point of view, to another level, on which its structure can serve as a base for cell phone.
In this sense, companies such as TIM, Vivo and Claro, will be concentrated in the sale of streaming services, digital sales channels, where the high speeds that 5G provides, will be essential for this type of service commercialization.


Evidently, this demand for consumption of data, services, products and solutions that will be offered by the new technology, will bring a lot of investment in the development of new products, making the valuation, and this will be a trend, of the telecommunications companies, not only the operators, but also those that will provide the structure such as Oi and the service providers related to this segment.
In view of this context, the forecast made by the World Bank will undoubtedly bring potential investors to Brazil, not only in telecommunications operators and providers, but a broader universe of products and services in which users' demand tends to grow with the arrival of technology.
Not far, the financial market will benefit, because in addition to the market already known as the so-called “teles”, there will be a demand for investment and a return on the shares (shares) of companies from all sectors of the economy.


The investment in manufacturers of telecommunications equipment will undoubtedly benefit from this new market and the appreciation of their shares on the stock exchanges in Brazil and worldwide, as well as the generation of more jobs for the country.