Editor’s Note: This week, The Bleeding Edge is highlighting one of the biggest trends on our radar: the rollout of the 5G networks. As Jeff says, 5G isn’t just evolutionary; it’s revolutionary. For three days, we’ll be spotlighting the investment potential of 5G with special morning editions of The Bleeding Edge. Here’s day two: the three phases of the 5G rollout.
As I’ve been telling readers of The Bleeding Edge, the 5G wireless rollout is here. It represents an exponential leap in wireless technology. It will usher in an estimated $12.3 trillion in wealth. And yes, fortunes will be made from key 5G stocks.
Longtime readers will need no reminding of the historic potential of 5G. But remember, we’re going back to the beginning for newer readers. Today, I want to tell you about how the 5G network will arrive…
Three Phases of a Network
5G will arrive in three phases. The three phases are…
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Infrastructure
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Devices
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Services
In Phase One, we are seeing the physical network build-out – infrastructure (towers, fiber-optic networks) and equipment (antennas, base stations, routers, and switches).
The 5G network architecture has changed compared to 4G. 3G and 4G technology used wireless towers that could cover 30-45 miles over flat terrain.
But 5G is completely different. It uses what’s called “small cell architecture,” which requires far more cell phone tower locations. For major metropolitan areas, this could mean one small cell phone tower on almost every street corner.
Today, there are about 200,000 4G cell phone towers scattered across the U.S. Yet when the 5G network is constructed, there will be more than 1,000,000 cell phone towers to support the higher bandwidth, higher speeds, and new services delivered over 5G.
We’re well into phase one right now. As I’ve been showing you, 5G networks are going live on a weekly, sometimes daily, basis. And that leads us into phase two…
5G Devices
Phase Two involves the adoption of wireless devices (smartphones, tablets, home routers, etc.) that run on the new 5G network and the components that go inside them.
We’re entering phase two right now. Back in February, several smartphone manufacturers debuted their 5G-enabled devices at the GSMA Mobile World Congress in Barcelona.
Huawei, Samsung, LG, and Chinese mobile phone producer Xiaomi all previewed smartphones that were able to operate over 5G networks.
And as I wrote recently, Apple recently confirmed that its 2020 iPhone will be 5G-enabled.
Once the infrastructure is built and 5G get into the hands of consumers, we’ll move into phase three.
5G Services
Phase Three will focus on services – companies deploying services that take advantage of the 5G network.
We saw this with the 4G rollout. When the 4G networks went live, mobile data speeds were finally fast enough to allow for some really amazing features.
Ride-hailing companies like Uber and Lyft were both enabled by the deployment of 4G networks. 3G wireless networks simply weren’t fast enough or couldn’t locate a user with enough accuracy for ride-hailing platforms to be viable.
Facebook is another great example. Most people don’t know this, but 75% of Facebook’s traffic is over a mobile device. And thanks to 4G speeds, browsing Facebook on a mobile device became a seamless experience.
Without the current 4G networks, these companies either wouldn’t exist or would be a fraction of the size they are today.
We’ll see the same dynamic play out with 5G networks. But remember… average 5G speeds will be 100 times faster. With those speeds, the services will be exponentially more impressive.
I’m talking about robotic surgery… remote-controlled fleets of semitrucks… even virtually commuting to the office thanks to holographic projection.
That’s the world we’re headed toward.
As I said, 5G is expected to unleash $12.3 trillion in wealth over the coming years. It will be the biggest investment opportunity of the next decade.
If you’re an investor, this is a trend that needs to be on your radar.
During the 4G era, individual stocks soared 868%, 1,745%, and even 3,200%. And I believe the biggest winners during the 5G boom could soar even higher with time.
And if you’re serious about investing alongside 5G, be sure you bookmark this date: August 22 at 8 p.m. ET. On that night, I’ll be hosting my 5G Investment Summit, The Final Phase of the 5G Boom.
I’ll show you my checklist for picking the best 5G stocks. I’ll even give you the name of my No. 1 5G watchlist company. Save your spot here. I hope to see you there.
Jeff Brown
Editor, The Bleeding Edge