5G Revolution: TELUS (TSX:T) Is the Leading Choice

The 5G revolution is ongoing, but one major telco appears to be the carrier to beat and the leading investment choice.

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People around the world are excited over the fifth-generation mobile network or 5G. The 1G, 2G, and 3G networks are obsolete, and 4G will be too. This latest wireless technology is not only faster in data speeds, but it could also bring devices, machines, and objects together.

Telecommunication companies are expected to roll out the 5G network to expand the mobile ecosystem and ensure superior reliability. All industries should benefit from higher speeds, and the impact should be positive, if not safer. Qualcomm.com reports that 5G will drive global growth.

Over the next 15 years, the projected CAPEX and R&D expenses will be around US$265 billion. Because the network could support almost all industries, the estimated worth of business (goods and services) that 5G will facilitate is about US$13.1 trillion.

In Canada, three major companies dominate the telco landscape, with BCE being the largest. TELUS (TSX:T)(NYSE:TU) is under threat and could fall to the third spot. The proposed merger between Rogers Communications and Shaw Communications could result in the second-largest telco entity. Nevertheless, if you’re looking for the top 5G stock, TELUS should be the leading choice.

5G will make incredible things possible

The 5G revolution is happening in Canada, and the race among the big players is on. TELUS VP of Network and Architecture Strategy Bernard Bureau said in an interview before that you shouldn’t mistake 5G for just speed increases. He said to expect this next stage of wireless technology to change the wireless landscape significantly if not everything.

Besides hyper-fast speeds, 5G promises low latency and increased capacity. All three would combine to make incredible things possible. However, Bureau stresses that 5G’s enormous potential stems solely from latency. It’s the most important and critical main reason the emergent technology will completely transform wireless networks and how people use them.

Carrier to beat

The competition in Canada is shaping to be intense, although TELUS appears to be the carrier to beat. It ranked first in six of seven categories regarding mobile network experience. The $37.62 billion company won in Video Experience, Voice App Experience, Download Speed Experience, and Upload Speed Experience. It tied for the top spot in Games Experience and 4G Coverage Experience.

Opensignal, an independent global standard for analyzing consumer mobile experience, shared key findings in its Mobile Network Experience Report dated August 2021. Among the notable ones is the overall download speeds. Canadian users experience faster download speed with TELUS (average 73.9 Mbps) compared with BCE’s Bell (69.9 Mbps) and Rogers (57.5 Mbps).

TELUS spends heavily on 5G such that as of June 30, 2021, its network covers around 36% (13.4 million) of Canada’s population. Management is aggressive and commits to investing an additional $40 billion to acquire critical technology components to support the 5G network and complete the rollout.

Income provider

Bureau said 5G would change Canadian home life. TELUS’s 4G fixed wireless access internet is among the best already, but the experience will be completely different when upgraded to 5G. TELUS is indeed leading the race. Apart from its industry-leading position, you’re investing in a dependable income provider.

TELUS raised its dividends for 18 consecutive years, so expect growing income streams if you invest today. The top-tier 5G stock trades at $27.64 per share and pays a hefty 4.57% dividend.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV and TELUS CORPORATION.

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