Asset allocation model
Our world is more connected than ever before, thanks in part to the telecommunication sector. These companies install and own the infrastructure that makes it all possible, encompassing cellular and telephone, satellite, cable, and internet service providers (ISPs). The breadth of the telecom industry means plentiful options for investors. Wireless in the U.S. means a few major players – T-Mobile, Sprint, Verizon, and AT&T. Verizon is the largest, and its existing scale keeps it insulated from competition (while keeping investors happy with increased dividends for over a decade). T-Mobile earns plaudits for its ability to draw new customers and keep them happy, and it retains potential for further geographic expansion down the line.Forbes reports that mobile data traffic is expected to grow at double-digit rates in coming years, making infrastructure providers especially important. This is doubly true as blazing-fast 5G technology prepares for a worldwide rollout. The technology has limited range, creating demand for companies that provide equipment to increase it. Crown Castle is a leader in small cell area technology – infrastructure that allows for larger service areas and more users – which will be even more vital in the 5G era.