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Is Comcast's (CMCSA) Network Ready for 5G Deployment?

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Apart from continuous investments in the digital media industry, leading cable MSO (multi service operator) and media and entertainment firm Comcast Corp. (CMCSA - Free Report) is also working toward the deployment of 5G network.

As per a recent Lightreading report, Comcast officials publicized the progress of its current network footprint which is expected to match up to the backhaul requirements of future 5G deployments. The announcement was made at the Deutsche Bank's 25th Annual Media & Telecom Conference on Mar 6.

The company officials mentioned that their fiber networks cleared the initial evaluation levels and are ready to serve the backhaul needs of advanced 5G wireless networks. Additional fiber will be added for both residential and commercial services development, thus making additional capacity available for backhaul for the roll out of 5G technology.

As far as the company’s existing coaxial plants are concerned, its officials  said that Comcast’s coax network will continue to serve residential broadband customers. However, nothing concrete was mentioned in relation to 5G.

What’s Up Between Cable TV Industry and 5G?

The entry of the cable television industry in the deployment of 5G network is grabbing eye balls.

Notably, in the field of communications and technology, 5G marks a revolution. All the four major wireless carriers –Verizon Communications Inc. (VZ - Free Report) , AT&T Inc. (T - Free Report) , Sprint Corp. (S - Free Report) and T-Mobile US (TMUS - Free Report) have been gearing up for 5G since 2016. Inspite of all their efforts, these carriers lack the last-mile network capacity required to support future 5G market connections. Mobile operators are building out more of their own fiber to manage the expected backhaul needs, but those are not enough.

This may be one of the reasons why Verizon is eyeing mergers with major cable companies. Moreover, Comcast and Charter Communications  have dense regional networks in multiple markets, which they will need for 5G backhaul.

Benefits of 5G

The next-generation 5G network will provide 50 times the throughput of the currently available standard 4G LTE network. Latency period of data delivery will be in single milliseconds.  Further, 5G technology is designed to be more power efficient than any other standard wireless network available now. Therefore, 5G-enabled mobile devices are likely to last longer than their older 3G or 4G cousins. Moreover, the superfast 5G mobile network will be of utmost importance for managing exponential growth in Internet-connected devices, popularly known as Internet of Things (IoT).

5G mobile handsets are expected to be available in the market by 2020, following a broader rollout of the technology. Commercial 5G handsets will be launched in South Korea and Japan and may not suit every pocket.

As we move on to the price performance of the company over the past six months, we see that shares of Comcast grew 13.18% compared with the Zacks categorized Cable Television industry’s gain of 10.76%.

Comcast currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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