As I write this, there’s a technology revolutionizing our world. You can’t see it, taste it, or feel it, but I can guarantee you that once it’s fully realized, it will change your life.
I’m talking about 5G wireless technology.
5G has been in the works for several years now, but so far we’ve mainly seen it applied to the internet and smartphones. The big wireless carriers – Verizon Communications Inc. (VZ), AT&T Inc. (T) and T-Mobile US, Inc. (TMUS) – began rolling out their 5G networks in select cities back in 2019. Verizon released its 5G network in Chicago and Minneapolis on April 3, 2019.
By the end of 2020, its 5G network provided coverage for 230 million people and 2,700 cities. AT&T now provides coverage for 250 million customers nationwide. Not to be outdone, T-Mobile’s 5G network reaches 308 million customers.
Interestingly, AT&T and Verizon recently got into a scuffle with the Federal Aviation Administration (FAA). Last month, the FAA raised concerns that a part of the 5G wireless spectrum called the C-band could interfere with aircraft radio altimeters, which are used to help pilots land their aircraft in bad weather conditions. If the pilots can’t see the runway, they can’t land the plans, which, in turn, could cause flight delays and flight diversions. The FAA released 1,462 Notice of Air Missions (NOTAMs) to 50 airports in the U.S. Given this, the FAA wanted to delay Verizon’s and AT&T’s 5G rollout.
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 on launching its 5G Ultra Wideband service that will cover 100 million people.
So, while the headlines sound scary, the FAA news in no way means 5G is a bust. Far from it.
The reality is the global pandemic accelerated the 5G rollout, as more and more folks sought fast and reliable networks for working remotely and entertaining at home. A recent “Global 5G Services Market Report” revealed the 5G services market is anticipated to breach $188 billion in 2025, or in other words, the 5G services market is forecast to grow at a compound annual growth rate of 23%.
To me, 5G’s amazing growth potential is just starting to play out and will continue apace for years to come.
In fact, on Tuesday, during my Big Bet Summit, I revealed why I see 5G setting up today to produce a slew of new winners.
Many people expect the transition from 4G to 5G will be in relative “straight-line” proportion to what we experienced when 3G went to 4G. I believe that won’t be the case at all.
The jump to 5G is exponentially bigger – up to 1,000 times faster than 4G versus the 50-fold jump that took 3G to 4G. In other words, for every single device 4G can currently support, 5G can support 1,000 times more devices.
For starters, the 5G smartphones alone offer plenty of profit potential. According to Juniper Research, revenue for 5G smartphones could top $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 stemming from other groundbreaking technologies like artificial intelligence (AI), driverless cars and augmented and virtual reality will finally get the lightning-fast connectivity required to realize their full potential.
A landmark study about 5G projects it will drive $13 trillion in global economic output in the coming years. To put that in perspective, the entire GDP of the entire United States economy is just over $20 trillion.
During my Big Bet Summit, I explained in detail how 5G will help those different technologies, as well as the stunning impact it will have on the U.S. economy. In case you missed it, you can watch a replay of the Big Bet Summit here.
And to help folks prepare themselves for the 5G boom, I created a special model portfolio I call the 5G Hypergrowth Portfolio: Six Stocks to Incredible Wealth. Each company is directly in line to profit from 5G. For full details, click here.
P.S. As a reminder, the stock market will be closed on Monday, January 17, in the observance of the Martin Luther King, Jr. holiday. The InvestorPlace offices, including our customer service department, will also be closed. I hope you enjoy the long weekend!
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
T-Mobile US, Inc. (TMUS)