As I write these lines, a technology is revolutionizing our world. You can’t see it, taste it or smell it, but I can guarantee that when fully realized it will be life changing.
I’m talking about 5G wireless technology.
5G has been in the works for several years now, but so far we’ve mostly seen it applied to the internet and smartphones. Major wireless carriers — Verizon Communications Inc. (NYSE:VZ), AT&T Inc. (NYSE:T) and T-Mobile US, Inc. (NASDAQ:TMUS) – began rolling out their 5G networks in select cities in 2019. Verizon launched its 5G network in Chicago and Minneapolis on April 3, 2019.
By the end of 2020, its 5G network covered 230 million people and 2,700 cities. AT&T now provides coverage to 250 million customers nationwide. Not to be outdone, T-Mobile’s 5G network reaches 308 million customers.
Interestingly, AT&T and Verizon recently had a fight with the Federal Aviation Administration (FAA). Last month, the FAA raised concerns that a portion of the 5G wireless spectrum called C-band could interfere with aircraft radio altimeters, which are used to help pilots land their planes in bad weather. If pilots cannot see the runway, they cannot land the planes, which, in turn, could lead to flight delays and flight diversions. The FAA has issued 1,462 Notices of Air Missions (NOTAMs) at 50 airports in the United States. Given this, the FAA wanted to delay the rollout of 5G by Verizon and AT&T.
At first, Verizon and AT&T pushed back against the FAA’s request, but in early January they agreed to delay the 5G rollout until January 19.
Verizon plans to launch its 5G Ultra Wideband service which will cover 100 million people.
So while the headlines sound scary, news from the FAA in no way means 5G is a failure. Far from there.
The reality is that the global pandemic accelerated the rollout of 5G as more and more people sought fast and reliable networks to work remotely and entertain at home. A recent “Global 5G Services Market Report” revealed that the 5G services market is expected to exceed $188 billion in 2025, or in other words, the 5G services market is expected to grow at a compound annual growth rate. by 23%.
For me, the incredible growth potential of 5G is just beginning to materialize and will continue for years to come.
In fact, on Tuesday, during my Big Bets Summit, I revealed why I see 5G rolling out today to produce a slew of new winners.
Many people expect the transition from 4G to 5G to be relatively “linear” compared to what we experienced when 3G moved to 4G. I believe that will not be the case at all.
The jump to 5G is exponentially greater – up to 1,000 times faster than 4G compared to the 50 times jump that took 3G to 4G. In other words, for every device that 4G can currently support, 5G can support 1,000 times as many devices.
For starters, 5G smartphones alone offer great profit potential. According to Juniper Research, 5G smartphone revenues could reach $337 billion by 2025.
5G will also enable billions of connected devices to connect, interact and collect data from each other, unlocking untold levels of productivity and innovation for consumers, industries and governments.
Big breakthroughs from other game-changing technologies like artificial intelligence (AI), driverless cars, and augmented and virtual reality will finally get the lightning-fast connectivity needed to realize their full potential.
A landmark study of 5G projects will generate $13 trillion in global economic output in the coming years. To put that into perspective, the total GDP of the entire US economy is just over $20 trillion.
During my Big Bets Summit, I explained in detail how 5G will help these different technologies, as well as the amazing impact it will have on the American economy. In case you missed it, you can watch a replay of Big Bets Summit here.
And to help people prepare for the 5G boom, I’ve created a portfolio of special models that I call the 5G Hypergrowth Portfolio: Six Stocks for Incredible Wealth. Every business is directly online to take advantage of 5G. For all the details, click here.
PS As a reminder, the exchange will be closed on Monday, January 17, the feast day of Martin Luther King, Jr.. InvestorPlace offices, including our customer service department, will also be closed. Hope you are enjoying the long weekend!
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T-Mobile US, Inc. (TMUS)