After All the Hype, 5G Is Finally Here
Editor’s Note: In today’s guest column, Oxford Club Engineering Strategist David Fessler writes about how 5G networks are finally widely available throughout the U.S.
And this nationwide 5G coverage NEVER would have happened without a California tech firm’s patented device…
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But that won’t last long…
A watershed event expected to come around the end of March could send this stock soaring.
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-Ryan Fitzwater, Associate Publisher
After years of hype, 5G networks are finally available throughout much of the U.S.
T-Mobile (Nasdaq: TMUS) was the first to launch a 5G network, doing so in December 2019. And last month, with much fanfare, AT&T (NYSE: T) and Verizon (NYSE: VZ) followed suit.
So now, these three major wireless carriers all have their 5G networks in operation.
But 5G service varies widely between carriers. So let’s look at the differences between the three listed above.
5G for All
When T-Mobile first launched its 5G network more than two years ago, it was available in 5,000 towns and cities in the U.S. Today, the company claims its “Ultra Capacity 5G” reaches 200 million people across the U.S. T-Mobile also offers a wireless 5G home internet service in some areas.
T-Mobile’s 5G is designed to operate on the “mid-band” 5G spectrum, which is the 2.5-gigahertz frequency band. It acquired that band when it bought Sprint.
But Verizon and AT&T’s 5G networks use a different frequency band. Their 5G systems use newly available wavelengths in what’s known as the “C-band” spectrum. That band of carrier frequencies is between 3.7 and 3.98 gigahertz.
With these wavelengths, AT&T’s and Verizon’s 5G systems have several advantages over T-Mobile’s.
Their cellular signals can travel longer distances. And more importantly, they can handle far more data. This means customers will have faster internet connections compared with T-Mobile’s customers.
AT&T customers in areas with C-band coverage will see a “5G-plus” indicator on their phones’ cellular status bars. And over the next several years, AT&T will continue to expand its C-band market.
Meanwhile, Verizon calls its 5G C-band service “Ultra Wideband.” It claims it will be available in 1,700 cities by the end of this month. Its users will see a “5G UW” indicator on compatible phones.
In addition to faster smartphone speeds, 5G offers the promise of super-fast wireless home internet.
I mentioned that T-Mobile currently offers wireless home internet on its mid-band system. And Verizon has started to offer 5G wireless home internet on its C-band network. I expect AT&T will soon follow suit with a competitive offering of its own.
Right now, Verizon’s 5G home internet has limited availability. However, both its and AT&T’s future offerings should be faster, cheaper and more reliable alternatives to cable and fiber internet systems.
Prepare for Turbulence
It hasn’t been an easy ride for these phone carriers or their 5G networks, though.
The Federal Aviation Administration is concerned about AT&T’s and Verizon’s 5G C-band systems because they could possibly interfere with altitude meters used by commercial airlines.
To combat this, Verizon and AT&T have temporarily dropped the power levels of their 5G systems near some U.S. airports. Once the Federal Aviation Administration gives the “all clear,” both companies will bring power levels back up.
Verizon’s and AT&T’s 5G networks also won’t run on just any smartphone. Customers who want to access the faster C-band spectrums will need compatible devices. Currently, these include the iPhone 12, the iPhone 13 and phones in the Samsung Galaxy S21 line.
And these 5G networks didn’t come without a price. Both Verizon and AT&T had to pay dearly for their C-band spectrums. In December 2020, when the Federal Communications Commission auctioned off C-band spectrum, Verizon paid $45 billion for its bands and AT&T paid $23 billion.
But I’d say it was worth the money. C-band spectrums are perfect for 5G services. Compared with the 2.5-gigahertz band, C-band signals travel longer distances and go through buildings much more easily.
5G Is the Future
Both AT&T’s 5G-plus and Verizon’s Ultra Wideband are much faster than the 4G LTE systems used by most smartphones today. On average, 5G C-band systems are 10 times faster, hitting speeds of more than a gigabit per second.
With 5G, downloading a movie to a phone will take seconds as opposed to minutes. Sports fans in large stadiums will be able to text and stream photos and videos.
5G is the future. And this future has finally arrived.
Smart investors who position themselves to profit as these networks continue to grow and expand are set to be richly rewarded.
Action Plan: Many of my readers ask me how they can best play the 5G rollout. Longtime readers know I’m a big fan of pick-and-shovel plays. And one of my favorites is a small, little-known semiconductor company. Its chips and technology are integral parts of 5G home wireless routers.
Right now, this company is selling for peanuts. It’s the perfect time for savvy investors to pick up some shares.
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