Wireless carriers offering a critical service, promise of 5G at low multiples
5G benefits in the future, critical service now
Telecom companies provide a service to consumers that’s basically a utility. But over the past few quarters, telecom stocks have traded close to all-time lows on a P/E basis. David Barden joins us to discuss how networks have improved to the point where there’s much less differentiation and many customers are bringing their own device, all of which has upped the competitive quotient. Still, wireless companies have spent billions on 5G while much of the revenue opportunity is still ahead. And fixed wireless broadband has boomed, now accounting for about 100% of net retail broadband adds from close to 0% in early 2021. It’s a product that offers a compelling trade down option for many consumers. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.
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