There’s plenty of talk about 5G technology these days, but some industry giants are already moving ahead to 6G. A recent virtual event has investors casting an eye toward what the future of telecommunications may hold for 6G stocks after the CTO of AT&T (NYSE:T) laid out a vision for what the future may look like for both his company and the industry. The way it looks from here, the exciting future that 6G represents may not be close, but it is absolutely worth watching.
What Happened With 6G Stocks?
For AT&T CTO Andre Fuetsch, the future of telecommunications may not be now, but it is shaping up to be exciting. During the recent virtual 6G Symposium, he outlined exactly what we can be expecting regarding the technology that is working to propel us into the next phase of telecommunications.
According to Fuetsch, the development of 6G “will push the spectrum envelope to the terahertz region, with throughputs 100-times that of 5G.” In this future, we can expect to see brands at the lower end of the telecom spectrum serve as “the backbone for wide area coverage,” indicating that this coverage will likely expand to areas that may be currently underserved by 5G coverage, likely more rural areas.
This future may be almost a decade away, but investors should keep a close eye on 6G stocks. AT&T shares have enjoyed some growth recently are currently up 0.83% for the day. Competitors Verizon (NYSE:VZ) and T-Mobile (NASDAQ:TMUS) are up 0.87% and 2.23% on the day, respectively. The latter has recently garnered positive media attention for its prioritization of providing coverage to rural areas.
Why It Matters
AT&T may be leading the charge, but good news for the development of 6G seems to be helping elevate most of the industry.
As of now, Fuetsch’s statements are that if he is correct in his timeline estimates, there are years ahead and complications to overcome for the companies pioneering 6G tech.
That said, promises of exciting developments can easily garner attention from digital financial communities which as we know, can certainly be enough to drive up share prices in the short term. Popular subreddit r/Nokia_stock has already named 6G to a list of potential future technologies to watch.
What is clear is that the 6G race is on as of today’s symposium, 6G stocks should be evaluated as exactly that, no longer as strictly 5G investments. The future may not be now but it is worth planning for.
What’s Next for 6G Stocks
Since it’s still early in the race, we can’t say for sure what comes next. If AT&T retains its leading position, it will certainly be a stock worth watching. However, there’s no reason to suggest that its competitors can’t gain more ground.
It should also be noted that the last time 6G made headlines, it was with regards to China’s own race toward the future. As it turns out, 40.3% of the industry’s 6G global patent filings belong to that nation, with Japan, Europe and South Korea trailing behind. Notice that the patent short list doesn’t include the U.S.
Many such patents have been filed with Huawei, a Chinese tech giant that the U.S. hasn’t maintained the greatest relationship with since the trade war kicked off 2018.
This will be a fascinating race, but for now, all we can do is watch as companies across the globe make strides toward the finish line. Only more progress will truly reveal which 6G stocks are worth the long-term investment.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.