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Sprint Presents 5G Capability at Copa America Centenario

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U.S. national wireless carrier, Sprint Corp.S unveiled its 5G technology at a Copa America event in Santa Clara, CA. The company exhibited live streaming of videos in 4K resolution with very low latency. The company is working with Nokia Corporation and Ericsson for testing its 5G network. Sprint's telecom rivals, Verizon Communications Inc. VZ , AT&T Inc. T and T-Mobile US TMUS , all had initiated 5G testing earlier.

The 5G Advantage

Several industry researchers hold that 5G network will provide a download speed of 1 Gbps (gigabit per second), which is 200 times the throughput of the currently available standard 4G LTE network. Latency period of data delivery will be in single milliseconds. Further, 5G technology is designed to be more power efficient than other standard wireless networks available these days. Therefore, 5G-enabled mobile devices are likely to last much longer than their 3G or 4G counterparts. Additionally, superfast 5G mobile networks will be of utmost necessity in managing exponential growth of Internet-connected devices, popularly known as Internet of Things (IoT).

Advantages for Sprint

Sprint has been losing customers lately and is trying every means to control churn to keep up with the competition. In this regard, the company has been continually making efforts to lure customers from rival carriers through offering attractive promotional plans. This has led to a high cash burn rate and heavy losses for the company over several years. Notably, Sprint refrained from taking part in the ongoing 600 MHz low-band spectrum auction (popularly known as Incentive Auction), conducted by the U.S. telecom regulator Federal Communications Commission (FCC), due to a shortage of funds.

Although several industry researchers do not expect a full-fledged 5G network deployment to start until 2020, Sprint's rival, Verizon projects some level of commercial deployment in 2017. Given the stiff competition in the telecom space, Sprint's efforts on making its mark among the industry leaders, and actively researching and demonstrating its 5G capabilities have been commendable. However, only time can tell whether Sprint will be able to deploy the technology effectively before its peers and benefit from being the first player in this market.

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AT&T INC (T): Free Stock Analysis Report

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T-MOBILE US INC (TMUS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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