You’ve likely heard of “5G.” Perhaps you’ve seen commercials on TV or read about 5G phones.
But what is it?
Well, 5G will be the most incredible communications infrastructure buildout of our lifetimes. It’ll transform our lives and enable us to do things we could never have done before.
All told, it’ll usher in $12.3 trillion in wealth. And for investors, it’s a once-in-a-decade investing opportunity…
If you have a modern smartphone in the U.S.—or the developed world, for that matter—you’re likely using a fourth-generation (4G) wireless network. But about once every decade, the world undergoes a major wireless infrastructure buildout.
In the 1990s, it was second-generation (2G) technology. In the 2000s, it was third-generation (3G) tech. And in the 2010s, it’s been 4G.
4G allowed a significant data bandwidth increase. This enabled internet browsing, high-quality video streaming, and voice over IP technology (basically, free phone calls anywhere in the world using services like Skype or any kind of messaging application).
Service from companies like Uber, Snapchat, Google Maps, and Facebook Messenger became regular parts of daily life. And most of us can’t imagine our lives without these now “basic” features at our fingertips.
But this mobile data usage explosion and additional functionality of 4G came with a cost…
The chart above shows the amount of data and voice traffic transmitted over the world’s wireless networks since the first quarter of 2014. And it shows the exponential growth in demand for sending and receiving data (like images, music, and websites) over wireless networks.
The amount of voice traffic (in gray) has been roughly constant over the last five years. But what’s striking is that data traffic (in blue) has exploded. In the first quarter of 2019, nearly 30 exabytes of data were transmitted per month. This almost doubled from the start of 2018.
An exabyte is equivalent to 100,000 times all the printed material in the Library of Congress. All the words ever spoken by human beings can be contained in just five exabytes. It’s hard to get your head around.
So what does this mean for internet users?
Well, have you had a dropped call in the last 12 months? Or how about not being able to hear someone after they pick up your dialed call? Has the internet been slow to download a web page? Can’t seem to download or send your email?
Now, these issues are almost always due to network congestion. Just like a highway traffic jam where the cars aren’t moving… there can be too much data on a wireless network. The digital packets of information just can’t get to where they’re intended to go.
And the problem is compounded by the growth of other technologies—such as the Internet of Things (IoT), which brings “connectivity” to everything from your toothbrush to your doorbell.
So how does 5G solve this problem?
5G to the Rescue
Typical 5G network speeds will be as high as 10 Gbps (gigabits per second). That’s 100 times faster than what a U.S. consumer experiences today with 4G.
You’ll be able to download a two-hour movie in 10 seconds. Dropped phone calls and slow-loading web pages will be things of the past.
And there will effectively be no latency (delay) over 5G networks. Latency will drop by 99% from more than 100 milliseconds down to a mere millisecond.
Plus, 5G-enabled smartphones will be able to send and receive data and information through four separate antennas through the wireless network.
Ultimately, 5G isn’t just evolutionary. It’s revolutionary.
And it’ll enable other equally amazing technologies.
With self-driving cars or remote surgeries, for example, you’ll want extremely low latencies. It’ll be the difference between life and death—and 5G will deliver…
The Three Phases
Now, 5G is arriving in multiple phases.
In Phase One, we’re seeing the physical network buildout—infrastructure (towers and fiber-optic networks) and equipment (antennas, base stations, routers, and switches).
3G and 4G technology used wireless towers that could cover 30–45 miles over flat terrain. But 5G architecture is completely different.
It uses “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 million cell phone towers to support higher bandwidth, higher speeds, and new services.
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. Many providers are releasing 5G phones this year, and Apple plans to release its first 5G phone in 2020.
Phase Three will focus on services—companies deploying services that take advantage of the 5G network.
All told, 5G is expected to unleash $12.3 trillion in wealth over the coming years. It’ll be the biggest investment opportunity of the next decade.
If you’re an investor, this trend needs to be on your radar. Entire industries will be disrupted. Some “sci-fi” tech will become a reality. And yes, fortunes will be made.
This unstoppable technology isn’t years away. It’s already here.
Editor, Exponential Tech Investor
P.S. You might be asking, “What sort of returns can we expect for the 5G boom?”
Well, 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.
So if you’re serious about investing alongside 5G, tonight is the night to bookmark. You see, tonight at 8 p.m. ET, I’ll be hosting my 5G Investment Summit.
I’ll not only show you my checklist for picking the best 5G stocks… I’ll even give you the name of the No. 1 5G company on my watchlist. So be sure to save your spot to my free event right here.