As the curtains roll down on an eventful 2021, the world eagerly awaits a new year that would likely witness the end of the ever-mutating coronavirus menace. The pandemic has highlighted the need for high-speed, high-bandwidth and low-latency connections — the hallmarks of the 5G network — for digital sustainability. With virtual communication largely replacing the in-person exchanges due to social distancing norms and increasing work-from-home option, telecom firms have stepped in to fill the void and aided countless people with large-scale 5G deployments to stay digitally connected.

The fifth generation of cellular technology, or 5G, has fast-tracked the wide proliferation of video and other bandwidth-intensive applications with a data transmission rate of about 10-100 times faster than the existing 4G networks. Billed as the technology of the future with faster download speed and low latency, 5G is touted as the primary catalyst for next-generation IoT services. These include connected cars, augmented reality, virtual reality platform, smart cities and connected devices that are likely to revolutionize key industry verticals.

As the 5G ecosystem evolves with increased deployment across the globe, it is likely to offer a plethora of opportunities for diverse industries to spearhead innovation and redefine our daily lives. Riding on such growth drivers, various telecommunication firms are poised to benefit in 2022 and beyond. Below is a list of three such potential stocks in random order.

T-Mobile US, Inc. (TMUS Quick QuoteTMUS - Free Report) : Reportedly offering the fastest network in the United States in terms of both download and upload speeds, T-Mobile is the first telecom carrier to activate nationwide 5G network. T-Mobile’s Ultra Capacity 5G presently covers more than 200 million people, while its Extended Range 5G covers 308 million users across 1.7 million square miles. The Ultra Capacity 5G network is powered by the mid-band 2.5 GHz spectrum. The mid-band spectrum of T-Mobile delivers superfast speed averaging around 300 Mbps with a peak speed of up to 1 gigabit-per-second. This is reportedly about 7.5x faster than the existing LTE networks. Telecom firms highly covet the mid-band spectrum as it allows longer ranges of electromagnetic waves and better penetration of signals through walls.

While other wireless players focus on the millimeter wave, T-Mobile continues to execute a multi-band spectrum strategy of using low-band Extended Range to cover the country and Ultra Capacity to bring fast 5G speeds to the maximum number of people. The company’s network has 14 times more capacity after its merger with Sprint than on a standalone basis, enabling it to leapfrog the competition in network capability and customer experience. T-Mobile’s mid-band 5G network is expected to cover 300 million people by the end of 2023. The company currently offers 5G fixed broadband services to 500,000 residential customers and plans to increase this tally to 7-8 million by 2025.

Following its merger with Sprint, T-Mobile boasts an unrivaled bouquet of high- and low-band spectrum for a faster nationwide 5G rollout, undeniably disrupting the competitive landscape of the U.S. telecom market. The company is further strengthening its mid-band coverage by adding more towers and spectrum in places that already have 5G network connectivity and aims to bring superfast speed to urban areas and rural locations. T-Mobile is housed within the Wireless National industry, carrying a Zacks Industry Rank #81, which places it among the top 32% of more than 250 Zacks industries. The stock’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

With a VGM Score of A, this Zacks Rank #3 (Hold) stock delivered an earnings surprise of 55.3%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Verizon Communications Inc. (VZ Quick QuoteVZ - Free Report) : Verizon is likely to benefit from a disciplined network strategy, including accelerated 5G deployment despite economic uncertainties stemming from the COVID-19 crisis. The wireless operator is building the 5G home solution and mobile edge computing on the same network and expects to witness a solid 5G momentum heading into 2022 backed by a customer-centric business model and diligent execution of operational plans. Moreover, in the enterprise and wholesale business, Verizon is changing its revenue mix toward newer growth services like cloud, security and professional services. In order to help small business enterprises tide over the coronavirus-induced adversities, the company has introduced Complete Business Bundle solutions. With reliable, plug-and-play Internet connectivity, desk phone and security solutions with 24/7 tech support, these solutions enable the digital transformation of small business entities. Verizon has further expanded Fios Forward to support digital inclusion and provide opportunities for underserved households to thrive in the digital world. Fios customers can experience faster upload and download than comparable plans with no data caps. The company’s focus on online content delivery, mobile video and online advertising should stoke growth in 2022 and beyond.

Verizon’s 5G mobility service offers an unparalleled experience that impacts industries as diverse as public safety, health care, retail and sports. The company’s 5G network hinges on three fundamental drivers to deliver the full potential of next-generation wireless technology. These are massive spectrum holdings, particularly in the millimeter-wave bands for faster data transfer, end-to-end deep fiber resources and the ability to deploy a large number of small cells. The company is continuing with the aggressive rollout of 5G Ultra Wideband service to expand its coverage across the country. It is also offering the best of LTE and 5G Ultrawideband facilities with the launch of On Site 5G — a transformative on-premises, private 5G network — for business enterprises. This customized solution enables firms hitherto crippled with coverage gaps, lost connectivity, fractured security, data congestion and inconsistent service quality to have a dedicated capacity with adequate bandwidth to minimize costly downtime and missed opportunities.

Verizon was the largest bidder with $45.5 billion worth of bids in the FCC-led C-Band auction for mid-band airwaves that generated about $81.2 billion in gross proceeds. The auction offered 280 MHz of spectrum for potential 5G deployments over the next few years. Verizon secured 3,511 of the 5,684 licenses up for grabs, gaining an average of 161 MHz of C-band nationwide spectrum. The C-Band offers significant bandwidth with better propagation characteristics for optimum coverage in both rural and urban areas than mmWave, which has a short-range and requires a high density of sites to achieve coverage.

This Zacks Rank #3 stock expects to capitalize on the continued 5G boom and outsmart competitive pressure. With a VGM Score of B, it has long-term earnings growth expectation of 3.3%. Verizon is housed within the Wireless National industry.

AT&T Inc. (T Quick QuoteT - Free Report) : As the first carrier in the industry, AT&T has unveiled its 5G policy framework that hinges on three pillars — mobile 5G, fixed wireless and edge computing. For a seamless transition among Wi-Fi, LTE and 5G services, AT&T intends to deploy a standards-based nationwide mobile 5G network. Its 5G service entails the utilization of millimeter-wave spectrum for deployment in dense pockets, while in suburban and rural areas, it intends to deploy 5G on mid- and low-band spectrum holdings. It believes that as the 5G ecosystem evolves, customers can experience significant enhancements in coverage, speeds and devices. An integrated fiber expansion strategy is expected to improve the broadband connectivity for both enterprise and consumer markets, while steady 5G deployments are likely to boost end-user experience.

AT&T is focusing on core wireless businesses to maintain its leading market position as the industry benefits from a healthy uptick in demand amid the lingering coronavirus scare. While optimizing operations, the company aims to increase efficiencies to lower operating costs and focus on 5G and fiber-based broadband connectivity. Management expects postpaid phone average revenue per user to stabilize in 2022 with higher international roaming calls and an uptrend in premium Unlimited plans. AT&T is increasingly focusing on its customer-centric business model to attract and retain customers for a lower churn rate. The company aims to profitably increase its postpaid subscriber base leveraging its network quality and market penetration capabilities. Riding on its go-to-market strategy, AT&T is witnessing solid subscriber momentum as total wireless subscribers increased by 4.9 million to reach 196.5 million in service by the end of third-quarter 2021.

AT&T has expanded its 5G network infrastructure in various markets to serve more than 255 million people. The company expects edge computing solutions to be widely available in autonomous vehicles, drones, robotic production lines and autonomous forklifts. Utilizing machine learning techniques and more connected devices, this could transform the way data-intensive images are transferred across the industry on real time basis.

With a VGM Score of B, this Zacks Rank #3 stock has a long-term earnings growth expectation of 3.7% and delivered an earnings surprise of 10%, on average, in the trailing four quarters. It is housed within the Wireless National industry.