Wireless companies have made significant investments in 5G wireless networks, but investors are not seeing a return on these investments as expected. Senior Equity Analyst at CFRA Research Keith Snyder discusses why 5G did not have the impact wireless companies had hoped for.
Snyder notes that these days providing connectivity alone is not enough: in the past, 4G connectivity was a significant selling point, but with more competitors entering the market, it has now become"a services game" for wireless companies. Snyder emphasizes that companies will have to show customers"what they can offer" alongside redefining their business models because"people didn't care about 5G" in itself.
Snyder points out that companies have tried to monetize 5G by offering services on top of their wireline broadband businesses. However, companies like AT&T , which already have pre-existing broadband businesses,"have to be really careful" about which markets they introduce these services in. The approach could also lead to"a congestion issue," with many customers using the same connectivity in the same markets.
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