Joining the 5G bandwagon, Sprint Corporation S recently announced plans to launch commercial 5G smartphones in the market in first-half 2019 in collaboration with electronics firm Samsung. This is reportedly the third device unveiled by Sprint for its 5G network, and follows similar such announcements by rivals Verizon Communications Inc. VZ and AT&T Inc. T.
(Read more: Verizon Seeks First Mover Advantage With Samsung 5G Phones and AT&T to Play Santa Early with 5G Device Launch in U.S.)
5G is billed as the technology of the future with faster download speed and seamless transfer of data. This revolutionary technology brings to the table three new aspects for the overall improvement of the sector, namely, greater speed (to move more data), lower latency (to be more responsive) and the ability to connect a lot more devices at once (for sensors and smart devices).
Leveraging state-of-the-art communication network architectures, 5G is touted to be the primary catalyst for next-generation Internet of Things (IoT) services. These include connected cars coupled with augmented reality and virtual reality platform, smart cities and connected devices that revolutionize key industry verticals. Moreover, 5G technology is likely to augment the scalability, security and universal mobility of the telecommunications industry, which is expected to propel wide proliferation of IoT.
The latest 5G Samsung smartphone to be launched by Sprint will offer dual-mode connectivity to both its LTE and 5G network supporting 2.5 GHz spectrum. For roaming facilities, the handset will support Sprint's 1.9 GHz spectrum (band 25), 800 MHz spectrum (band 26) and other LTE spectrum bands. Initially, Sprint aims to commence its mobile 5G network services in nine of the largest cities in the country, adding subsequent markets in the due course of the year. These are Atlanta, Chicago, Dallas, Houston, Kansas City, Los Angeles, New York City, Phoenix and Washington, DC.
Notably, in August 2018 Sprint became the first U.S. carrier to announce that it was working with LG Electronics to launch a 5G smartphone by the first half of 2019. In November, it announced that it was collaborating with HTC to bring 5G mobile smart hub to the United States in early 2019. The latest move further reinforces the continued focus of the company to capitalize on the huge market potential of 5G and generate a steady revenue stream.
With a diligent execution of operational plans, this Zacks Rank #2 (Buy) stock has returned 8.9% against the industry’s decline of 4% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has inked a merger deal with T-Mobile US, Inc. TMUS in an all-stock transaction. The deal would help to accelerate development of faster 5G wireless networks and ensure that the United States does not cede leadership on the technology to China. The companies expect the deal to close by the first half of 2019 and result in about $6 billion in annual cost savings. The combined entity would have about 127 million customers. It will be a force to reckon with in the U.S. wireless, video and broadband industries. The new company will have the network capacity to rapidly create a nationwide 5G network with the breadth and depth needed to enable U.S. firms and entrepreneurs to continue leading in the 5G era.
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