Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20
AMAZON Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 11th Jan 20
Gold Price Reacting to Global Flash Points - 11th Jan 20
Land Rover Discovery Sport 2020 - What You Need to Know Before Buying - 11th Jan 20
Gold Buying Precarious - 11th Jan 20
The Crazy Stock Market Train to Bull Eternity - 11th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Don’t Buy “4½G” Stocks If You Want to Make Real Money from 5G

Companies / 5G Dec 20, 2019 - 11:29 AM GMT

By: Stephen_McBride

Companies

T-Mobile (TMUS) just made 5G history. Last Friday, the cell carrier “flipped the switch” to activate America’s first widespread 5G network. T-Mobile’s new 5G network will reportedly cover more than half of all Americans.

This is a big deal. As you probably know by now, 5G is the new superfast cell network that promises to change the world. At up to 100X faster than 4G, its lightning speed will totally change how we use the internet.

Folks have been talking about 5G and hyping it up for years. It’s finally here! Only problem is, it’s not “real” 5G.


There’s Something T-Mobile Isn’t Telling You

I recently visited a cell phone store to try 5G myself. The sales guy whipped out a brand new 5G phone and downloaded a two-hour high-definition movie in about 10 seconds. This would take at least 15 minutes on 4G.

And downloading a movie in seconds is the least exciting thing about 5G. With 5G, you’ll be able to attend meetings holographically. You’ll be able to nap during your commute as a true self-driving car takes you home from work. Fully robotic factories will practically run themselves.

T-Mobile’s Version of 5G Can’t Do Any of This!

Although T-Mobile’s marketing department calls its net network “5G,” it’s really more like “4 ½G” because it’s not all that much faster than current 4G networks.

See, T-Mobile’s goal was to be “first” to 5G. To win the 5G race against Verizon (VZ) and AT&T (T), it had to sacrifice a lot.      

That’s because 5G has a glaring weakness. Although a true 5G signal is blisteringly fast, it can only travel roughly 1/200 the distance of a 4G signal. Verizon’s 5G signal in Chicago stretches only about 120 yards.

One tower can’t even cover a single NFL stadium, which is a problem when you’re trying to roll it out across sprawling cities. Short signals make the coverage extremely patchy.

Verizon and rival AT&T are building new mini-cell towers on practically every street corner to make true 5G work. In other words, they’re rolling out their networks block by block.

T-Mobile Is Taking a Different Approach with Its “4½G” 

Instead of building a whole new fleet of small towers, it has revamped its existing cell towers with 4½G network gear. These receivers can blast a signal up to 2.5 miles away, which is how T-Mobile reached 5,000 US towns with the flip of a switch. The downside is speeds aren’t much faster than regular 4G.

Now the question is: Will being “first” to 5G help T-Mobile steal customers from other cell companies? Or will Verizon and AT&T’s focus on real 5G be the winning strategy? If I had to rank these “big 3” cell carrier stocks, I’d probably go:

  1. Verizon
  2. T-Mobile
  3. AT&T

Verizon’s slow, methodical buildout of true 5G will take many years, but I expect its 5G network to cover most major US cities in the next 12 months. And Verizon’s customers mostly live in densely packed cities.

With a slew of new 5G smartphones—including the iPhone—hitting the market next year, Verizon’s sales should get a boost. With its “4½G” strategy, T-Mobile will dominate in rural America.

Sure, it’s just a puffed up 4G. But because the 5G rollout will take years and will focus on cities first, 4½G will be the fastest service available to rural America for a while.

Where Real Money Lies in 5G

But if you want to make real money from 5G today, there are much better stocks to own now. The “big 3”—Verizon, AT&T, and T-Mobile—must shell out billions of dollars to get America 5G ready.

The Federal Communication Commission (FCC), America’s wireless network “overlord,” estimates we’ll need 800,000 “small" cell towers to make 5G a reality.

For perspective, America’s existing network—built over 25 years—has just over 200,000 towers!

Even T-Mobile’s “4½G” tactic requires a revamp of its networks. It built 23,000 towers this year and plans to put up another 20,000 in the next few months.

And building towers is just the tip of the iceberg. Roads must be pulled up to lay underground fiber-optic cables. Wxisting cell towers have to be refitted with new 5G equipment.

It’s a giant, multi-billion-dollar infrastructure product. The bottom line is the “big 3” cell carriers are footing the bill.

Buy Stocks That Milk the “Big 3”

Why own the companies spending billions on 5G when you can own companies collecting all these billions? I’m talking about firms in the business of building the 5G infrastructure: putting up the 5G towers, selling the 5G networking equipment, providing the 5G hardware.

That’s where you want to be invested right now—in businesses that the “big 3”—AT&T, Verizon, and T-Mobile—are throwing heaps of cash at. Remember, we’re slap bang in the middle of the 5G buildout phase. You want to own the stocks profiting from the buildout, not paying for it!

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"

Get my latest report where I reveal my three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Stephen McBride

http://www.riskhedge.com

© 2019 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules