Growth is expected in Telecommunication this year

Growth is expected in Telecommunication this year

TelcoWe are expecting an increase in mergers and acquisition in telecommunication world this year. Changes in policy that includes deregulation and cut in corporate tax will be beneficial for the telecommunication industry. It will also ease the process for companies to merge.

The corporate tax cut would provide an immediate cash flow for the telecom world, it could be a great opportunity for the industry to invest in the 5G network R&D and its implementation across the US.

With the 5G (fifth-generation) wireless networks, Verizon is planning to implement this year their next residential 5G wireless broadband services to a small market. It will be fully launched across the US by 2020. The 5G could be the key for the growth in that market.

AT&T and Time Warner are heading for a battle in court against the US Department of Justice (DOJ) over their $85.4 billion merger deal. Last November, the DOJ filed a lawsuit against them over the acquisition, citing the deal would increase prices for rival pay-TV operators and memberships. Most recently AT&T and the DOJ negotiation failed to show the merger would not impact the competition.

2018 could be beneficial for the following companies

Verizon Communications Inc. The largest wireless operator in the US has started its field trials for the 5G. It could also unveil a new internet TV streaming services.

AT&T: The second largest wireless operator has also become one of the top player in pay-TV operator after the acquisition with DIRECTV. AT&T is waiting the decision about the merger with Time Warner Inc.

Comcast Corp. The largest multi service operator entered last year in the wireless space, this acquisition could expand its internet TV service.

T-Mobile US Inc. The leading national wireless service is focusing this year in the Internet TV streaming service. With combination of its unlimited data plans and the expansion of the LTE-U technology it should attract new customers

The telecommunication is one of the few industries to have seen rapid technological improvement for the past few years.

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