Cisco Systems, Inc. (NASDAQ:CSCO) Report Shows Early Lead Of Americans In 5G Race
The stock of Cisco Systems, Inc. (NASDAQ:CSCO) trades at $49.65 when it released a report on the 5G race. It is trading now at $51.59. Chuck Robbins Chief Executive Officer of Cisco, said the company would outperform Huawei, the Chinese rival, in its 5G race. It also enjoys a proposed ban on Chinese communications equipment on security concerns. The company expects more revenues from recent transformation to software and services. The networking giant expects a threefold rise in network traffic in the next five years.
Cisco expects that users would consume more 5G data in 2022. According to CEO, 5G finds usage in manufacturing, healthcare, education, and other industries. The policymakers in the US are wringing their hands on how to bring 5G wireless network to masses while competing with China. However, a report from Cisco offers respite on this front.
5G penetration at 9%
According to Cisco, 5G wireless network penetration would reach 9% by 2022. Asia would account for 4% of the penetration in mobile data connections. A maker of network technology, Cisco said the policymakers in the US are leading the 5G race when countries such as China are putting in efforts to outperform western nations in 5G.
Higher download speeds with 5G
The 5G wireless network would higher download speeds when compared to existing 4G in-home internet. The launch of 5G would offer new capabilities in remote medicine, self-driving cars, and smart appliances with a constant internet connection. North America would account for a large share of 5G in 2022.
Asia-Pacific region would account for a share of 422 million devices of 5G. Western Europe would account for 6.5% share of the 5G. Senior Director (Government Affairs) at Cisco, Mary Brown said the US made significant progress in policy changes to support 5G deployment. The company does not see the same strategy in the rest of the world for deploying 5G. The company expects a phenomenal change for 5G in the next 12 to 18 months.
The 5G handsets would be available by the end of 2019 for any customer to experience the 5G wireless network. Meanwhile, the prominent carriers like Verizon and AT&T adopt a strategy to convince the customers about their progress in 5G.