[ad_1]
The applications of tomorrow will still be present everywhere in the Amazon cloud computing facilities (AMZN – Get Report), Alphabet (GOOGL – Get Report), Google and Microsoft (MSFT – Get Report).
Significantly, they will do not be a product of AT & T (T – Get Report), Verizon Communications (VZ – Get Report), or in any form whatsoever, a combined Sprint (S – Get a Report) and T-Mobile US ( TMUS – Get a report) finally takes.
This means that the new 5G networks put into service with consumers this year will provide a new opportunity for cloud computing titans and a kind of disappointment for Verizon and others.
For several years, Verizon and its rival rivals have been explaining how much faster 5G mobile will offer all kinds of opportunities for mobile devices and consumers. And that is probably true. With downstream speeds of up to one billion bits per second for Qualcomm chip-enabled mobile devices (QCOM – Get Report), the leading provider of cellular modems, different types of mobile applications will run on smartphones, tablets and other devices.
With lower latency, it will be possible to make video games, movies, and other applications do much more in the cloud before transmitting information to the mobile device. The wireless link enables applications that do not rely solely on mobile capabilities, but that can separate IT tasks between the hand-held device and the huge IT facilities located at the other end of the computer link.
But who will provide these services in the cloud? It is not the telecom operators who have shown their usual lack of insight for services using their own networks. The AT & T DirecTV Now video offer has not managed to conquer the world. Acquisition of Yahoo! by Verizon In 2017, nearly $ 5 billion did not create a content hub, although they contributed to the company's advertising revenues. At present, T-Mobile and Sprint are even less likely to provide content and applications to individual consumers.
On the other hand, cloud titans, such as Google, decide to offer services of one kind or another. The recent announcement by Google of a game service run in its cloud computing facilities, called "Stadia", is a stark example. The service performs the heaviest part of video game rendering on Google computers, easing the burden on mobile devices. This is only one example. Annie Gaus wrote that there was a plethora of streaming game services on the way.
With big investments in data centers to provide computational power, the Google Cloud, Amazon's AWS and Microsoft's Azure are the new platforms for applications that run on 5G networks faster. Some of them will be owned by the titans themselves, while others will be owned and operated by cloud titan customers who lease the necessary computing capacity to make them possible.
At the same time, telecom operators, who have never mastered applications for consumers, will have to look for other ways to take advantage of 5G. First, they will look for it as a way to retain their existing subscriber base, both consumers and businesses, and possibly raid a small number of subscribers here and there.
It is possible that the use of Google's cloud-based applications and others is prompting 5G subscribers to purchase larger monthly buckets of minutes from telecom. True, they hope, but the price-conscious consumer will be slow to increase his monthly bill.
For telecom operators, the most likely way to get rich is to poach subscribers of Comcast (CMCSA – Get Report) and Charter (CHTR – Get Report), as well as other cable operators. Removing the entrenched strongholds of cable, which dominate broadband in various parts of the United States, has been a quest for mobile operators for years. With downlink speeds of 2 gigabits, there is finally a valid proposition for Verizon and AT & T and the others to go to consumers and convince them to drop their coaxial connections in favor of cellular broadband.
The solution offered by mobile operators in business connections is even better: wireless links can quickly add links to offices instead of the long delay required for fixed line connections.
So, everything is not bad for Verizon and the others. They still have opportunities to leverage their investment in 5G. But the richest services will belong to the younger technological names that control the computing facilities of today and tomorrow. They will skim the cream of the richest and most profitable offers offered by the 5G, leaving telecom operators to fight each other again for the rest.
Amazon, Microsoft and Alphabet are stakes in Jim Cramer Action Alerts PLUS Portfolio Charitable Trust. Do you want to be alerted before Cramer buys or sells these shares? Learn more now.
How much money will I need to retire?
Want to know more about retirement planning with some of the best experts in the country? Join Robert "M. Retirement" from TheStreet in New York on April 6th at the Symposium on Retirement Strategies. For a limited time, $ 99 tickets are available for this one – day event. Check the agenda, discover the speakers and register here.
[ad_2]
Source link