Ericsson, Nokia, Samsung, CommScope, Ciena and other vendors involved in US 5G rollouts could benefit from near-term spending as operators try to get ahead of potential supply shortages, a Raymond James analyst predicted.
In a research note, Simon Leopold, MD at the investment bank, stated a potential change in operator AT&T’s capex plans offered benefits for the two European vendors and CommScope.
Concerns about potential supply chain constraints raised the possibility of a “more front-loaded” capex by AT&T, with the trio of vendors the likely beneficiaries due to their “direct 5G plays”. Leopold also highlighted potential upside for Ciena, due to its role in site aggregation and optical networks for cities.
During AT&T’s Q1 earnings call [1], CEO John Stankey explained it is “waiting on specific units” for its 5G rollout. “Global supply chains are stressed right now across the board”, he said, adding shortages could develop as “everybody’s racing to put stuff up on towers”.
Earlier this year, Dish Network stated construction of its greenfield 5G network [2] was delayed because it had to wait for more radios to become available from Fujitsu.
Verizon implied on its earnings call [3] it may be spending now in an effort to secure access to equipment: CEO Hans Vestberg noted it had already ordered half the equipment it needs for a C-Band deployment.
[1] https://www.mobileworldlive.com/featured-content/top-three/wireless-warnermedia-lift-att
[2] https://www.mobileworldlive.com/featured-content/top-three/dish-gives-public-cloud-a-breakthrough
[3] https://www.mobileworldlive.com/featured-content/home-banner/vestberg-hails-verizon-c-band-progress
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