Telecom Stock Roundup: Verizon To Launch 5G, Qualcomm's U.S. Verdict & More
Zacks Investment Research | Mar 21, 2019 10:54PM ET
Telecom stocks witnessed an uptrend for the bulk of last week as the United States and China are reportedly closing toward a landmark trade deal. The U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are scheduled to travel to Beijing later this week to meet a Chinese delegation led by Vice Premier Liu He for further discussions. As the two countries aim to bridge the trust gap, President Trump upped the ante by hinting that the $250-billion U.S. tariff on Chinese exports will continue to remain suspended even if the deal is inked.
The countries seem eager to walk the extra mile to reach a consensus decision that honors domestic obligations as well as international commitments. The bilateral trade negotiations presently seek to solve some lingering issues on China’s subsidies, cyber theft, public sector enterprises, IP rights and so-called forcible technology transfers. A final date for the formal meeting between the two state heads is yet to be decided as China aims to avoid the humiliation of a failed deal like that of North Korean leader Kim Jong Un. Trump also hinted that the U.S. tariffs will not be withdrawn altogether and will continue to remain suspended in order to maintain pressure on China.
As the industry awaits further clarity on policy issues and its aftereffects with no official statement release, there is an element of uncertainty in the domestic market. Meanwhile, the bill introduced by the Democratic lawmakers in the House and Senate to reinstate the net neutrality rules that the Federal Communications Commission had repealed in 2017, was in cynosure. Titled ‘Save the Internet Act’, the bill aims to discourage blocking or throttling content and consider Internet access as a “utility” under Title II of the Communications Act. The Democratic-led U.S. House of Representatives will vote on the bill in April. Although it is expected to pass the House, stiff resistance is apprehended in the Senate where Republicans hold the majority. Moreover, the bill is likely to be vetoed by Trump as he had been vocally skeptical of net neutrality in the past.
Regarding company-specific news, 5G launch, trial verdicts, strategic hires, product launch and collaborations primarily took center stage over the past five trading days.
Recap of the Week’s Key Stories
1. Verizon Communications Inc. (NYSE:VZ) has upped the ante against its rivals by aiming to launch the 5G Ultra Wideband network in Chicago and Minneapolis on Apr 11. As the company gears up to increase the tally of 5G Ultra Wideband mobility cities to 30 in 2019, it is offering an exclusive 5G moto mod by Motorola Solutions, Inc. (NYSE:MSI) to power moto z3 — the world’s first 5G-enabled smartphone — to enable users to fully utilize the network features.
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The 5G Ultra Wideband network hinges on three fundamental drivers to deliver the full potential of 5G technology. These include massive spectrum holdings, particularly in the millimeter wave bands for faster data transfer, end-to-end deep fiber resources and the ability to deploy large numbers of small cells. (Read more: Zacks Investment Research
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