Discussions about 5G technology and its stocks have been going on in India for quite some time, long before the DOT approved a free trial of 5G technology in India and subsequently held a 5G auction. Most investors are already interested in his best 5G stocks in India and the methodology of deciding which stocks to buy on the stock market.
With 5 G’s far superior technological progress, breadth of applications, and ability to scale, it cannot be considered a traditional telecommunications player.
With the 5G auctions now over and telecom giants such as Reliance Jio and Bertie Airtel dominating most of the 5G auctions, the future could be around the corner. From a stock market perspective, we first understand the nuances of 5G technology and then consider the best 5G stock in India.
Before we dive into the list of top 5G stocks, let’s quickly look at newest technology and its market. After all, these networks already live in over 60 countries worldwide, including China, the US, the EU, South Korea, and more.
What is 5G technology?
5G stands for the fifth generation and is the latest global mobile communication standard. Most of India already has 4G, but moving to 5G, even from here, represents a significant shift in user experience. Communication technologies up to 4G were more like point-to-point connections. However, 5G can scale quickly so that this cycle will include machines and devices, and users. This 5G technology suits high-end cloud computing, artificial intelligence, machine learning, natural language processing, the Internet of Things (IOT), etc.
Expected 5G market size
The size of the 5G market depends on the scope and quality of investments. According to preliminary estimates, the 5G market is currently valued at 90 Thousand Crore INR and is expected to grow nearly fivefold to 2.05 Lakh Crores INR by 2026. The potential of 5G and its applications in India are vast, and once it reaches critical mass, growth from there could be virtually exponential.
Best 5G Stocks to Buy In India
The deployment of 5G technology will benefit telecom service providers and telecom equipment manufacturers. Let’s have a look at the Best 5G stocks in India.
1. Reliance JIO
Reliance JIO is not a public company. The company is part of the Reliance Industries Group. In 2016, RIL’s JIO shocked the telecommunications industry by providing its 4G service in India at a price 95% cheaper than its competitors. The company used SIM cards to offer free voice calls and related services, such as an over-the-top (OTT) platform.
JIO is now the market leader among 5G companies in India. It has developed its own 5G solution that works in the cloud and is digitally managed. The company has been experimenting with drones with 5G connectivity. That’s why it is considered one of the best 5G stocks to buy this year.
2. Vodafone Idea
VI is an Indian telephony company formed by the merger of Vodafone India and Idea Cellular. The company is the tenth-largest telecommunications service provider in the world. Many technologies required for deploying 5G services, such as Massive MIMO, DSR, and core cloudization, have been introduced. They tested 5G in two cities with their biggest network partners, Nokia and Ericsson.
3. Bharti Airtel
Bharti Airtel Limited is one of the leading 5G companies investing in India. The company has principal offices in India and Africa. Works in over 18 countries. The company is India’s second-largest mobile operator after Reliance Jio.
This experiment with Nokia in Kolkata has been an enormous success. They just announced that they will release their 5G service in about a month. All major cities in India will have access to Airtel’s 5G service by the end of 2023, and even the most remote villages in India will have access to 5G service by March 2024.
Bharat Sanchar Nigam Limited owns 100% of its MTNL (BSNL) shares. Although MTNL operates on only two telecommunications lines in India, it has grown to become India’s third-largest Internet Service Provider (ISP) due to its market dominance in Mumbai and Delhi. The company is only in two cities, but it is the third-largest ISP in the country. The Ministry of Technology provides his MTNL 5G spectrum.
Himachal Futuristic Communications Limited (HFCL) is an Indian telecommunications company founded in 1987. We work with various industries, such as telecommunications, security, railways, textiles, and cable fiber.
The company manufactures a wide range of 5G products, such as 5G radio access network (RAN) and 5G transmission equipment for both Indian and global markets. The 5G RAN portfolio includes macro radio units, cell site routers, and aggregation routers. Additionally, the company aims to capture India’s INR 1 trillion (5G) market and export to West Asia, Southeast Asia, and Europe.
6. Starlight Technologies
Indian technology company Sterlite Technologies Limited focuses on fiber and cable, hyper-scale network design and deployment, and networking software.
The company operates in many countries worldwide, including the Middle East, Europe, and the United States. The company plans to build its 5G networks in India and elsewhere by integrating optical and wireless technologies with virtualization and a systematic approach to network deployment. This company is in the race for the best 5G stocks for investors.
Undoubtedly, in the next few years of growth will be driven by rising data traffic, which needs to address optimally. But when 5G arrives, our current woes are set to become a thing of the past. If you’re keen on buying the Best 5G stocks related to the Indian Telecom space, analyze the fundamentals of every company first.