Our mission is to help you really move the needle on your wealth.
We do that by bringing the best “curated” investment intelligence from Teeka Tiwari, Jeff Brown, Dave Forest, Nick Giambruno, Dan Denning, Jason Bodner, and the rest of the Legacy Research team straight to you in easy-to-read digest form.
One of the most lucrative profit opportunities we’ve been tracking for you is in the boom in 5G wireless internet technology.
That’s why, for this week’s mailbag, we’re doing something different. We’re dedicating today’s full dispatch to your questions about this bleeding-edge tech trend.
Our in-house tech expert, Jeff Brown, held an online summit called Jeff Brown: Beyond Exponential last week all about 5G. It was a huge hit. More than 25,000 of your fellow readers showed up.
Jeff traveled across the American heartland to experience 5G technology there for himself. And he brought back a ton of fascinating video footage of what he discovered.
At his summit, Jeff also demonstrated live trades on camera to show viewers how he would build a million-dollar tech portfolio if he lost everything tomorrow… and had to start from scratch.
If you couldn’t join us last week, a replay of Beyond Exponential is available at no cost. You can find it right here. Be sure to watch before it’s taken down at midnight.
Then read on below for the 5G questions readers have for Jeff… and his in-depth answers…
Reader question:
What is the big deal about 5G for cell phones? I don’t do gaming and don’t watch movies on my iPhone. The speed of my 4G phone seems perfectly adequate for email and texting, so what’s the advantage of 5G? And why bother if the networks still need a lot of build-out?
I understand 5G works in closer proximity to the cell towers, which must be spaced closer together, resulting in many more of them. Will 5G work indoors from outdoor towers? Or will we need new routers for indoors?
Similarly, how does one get 5G for computers indoors? That’s where speed will make a difference. Same question – new router?
– James A.
Jeff’s response: Hi, James. Thanks for your questions.
To your first point, on some 4G wireless networks, the speeds are suitable for what we need to do with today’s applications. If all a consumer wants to do is text and read a few emails, 4G is going to be fine most of the time.
But I live in a busier economic region of the country with a higher population density. I have watched the speed of my 4G wireless network operator decline consistently over the last three years.
Today, I often have limited internet access or video reliability because my wireless network has simply become too congested. At times, I am literally unable to download emails and struggle to send or receive a simple photograph over text.
The reason is too many people are on the network doing data-intensive things (like watching video). Sometimes the network grinds to a complete halt. I still experience dropped calls on a regular basis over the latest and greatest 4G networks.
Perhaps you aren’t experiencing the same thing. Wireless networks in less populated areas have less congestion right now, but it won’t be like that forever. Here’s why…
The amount of data that flows over these 4G networks is growing exponentially. Take a look at the chart below.
Our wireless networks saw over 45 exabytes of data traffic in Q1 of this year, a 56% increase from just a year before. An exabyte is equivalent to 100,000 times all the printed material in the Library of Congress.
4G wireless networks simply can’t transmit this growth in data forever… Eventually, every 4G network will slow down.
And as 5G wireless networks become more ubiquitous, new consumer-facing applications will launch that are very data-heavy. These will include things like augmented or virtual reality and immersive multiplayer gaming applications. Without a 5G-enabled smartphone or tablet, these apps won’t run properly.
To your second point, many of the 5G wireless networks are deploying over millimeter wave (mmWave) frequencies. These are higher frequencies than those 4G or 3G wireless networks currently use.
These mmWave networks require a small cell network architecture. That means the 5G network will require exponentially more base stations to provide the same kind of network coverage as 4G. And yes, that even means putting small 5G base stations or repeaters inside buildings.
I’d like to make one key point… Building penetration has nothing to do with a “weakness” of 5G wireless technology. 5G is simply a new technology, operating at higher frequencies, that requires a different network design.
Building penetration is enabled by building out the small cell network architecture to ensure that signal levels inside of buildings allow connectivity.
I tested this out for myself recently on my American heartland tour. I crisscrossed the country testing out 5G networks in different cities. And I was even able to connect to 5G networks from the inside of a bank vault.
You can watch my indoor speed test below.
So while there’s still a way to go as these networks expand their coverage, we will certainly be able to access 5G indoors.
And the infrastructure required to make 5G a reality is just one reason I think this is the biggest tech-investment trend of the decade.
My tour convinced me the opportunity here is actually five times bigger than I previously thought. As investors, we need to make sure we’re paying attention to 5G technology.
If you missed my Beyond Exponential summit, you can go here right now to watch a replay of my latest findings on this millionaire-making trend.
And as for 5G routers, this technology is really designed for fixed internet access. A 5G-enabled router connects to the internet using a 5G wireless connection. The device then uses a Wi-Fi router to connect the user to the internet.
The nuance is that a consumer’s electronic devices connect via a local Wi-Fi network (not the 5G network), while the Wi-Fi network accesses the internet using a 5G wireless connection.
This is something I’m particularly excited about because internet connectivity over cable-TV-provided services in the U.S. is embarrassingly bad compared to other developed countries.
And CATV-based internet providers ranked dead last in the 2019 American Customer Satisfaction Index.
As an alternative, Verizon Wireless just revealed a powerful new 5G home gateway system earlier this month.
Verizon’s 5G home router. Source: PCMag
The 5G home gateway is a Wi-Fi 6 router that has an Ethernet port and a 5G internet receiver built in. It will allow us to replace the horrible, overpriced internet service cable TV companies offer with true 5G wireless broadband.
Verizon is rolling out its 5G gateway product in the higher frequencies. It’s a true ultra-wideband service. Verizon says customers will get speeds of at least 300 megabits per second (Mbps), and top-end speeds will hit 1 gigabit per second (Gbps).
300 Mbps is on par with the best internet services around the country. Anything above that level is superior to what we typically experience getting broadband internet over a CATV network today.
And here’s the best part – this is a turnkey system. Because the gateway is wireless, consumers can set it up themselves. No more waiting for technicians to show up within a four-hour window.
Just one final point about smartphone upgrades…
Several times throughout the year, the operating systems of our smartphones get upgrades such as security patches and new feature improvements. This is true for both Android’s operating system and Apple’s iOS.
With each new software release, the code tends to get “heavier.” For the new software to run well, our phones require more and more processing power.
This is why each new smartphone generation includes new semiconductor designs that are typically 50%-plus more powerful and more power-efficient.
Eventually, after three years or so, the older semiconductors really struggle to run the latest smartphone operating systems. There is a noticeable drop in performance, and it isn’t unusual for a smartphone to lock up and require a reboot to run properly. This is when we know our phone is too old, and we really need to upgrade.
So even if we don’t feel we need a new phone to take advantage of the super high speeds of 5G and low-latency applications, we’ll still benefit from upgrading our phones every few years.
And I’m willing to bet that most consumers will be pleasantly surprised by at least a few of the new applications taking advantage of 5G wireless technology.
Next, a reader wants to know more about how to locate 5G coverage…
Reader question: Can you tell us which carrier will have the first legit 5G and not the 5GE that you’ve talked about? They all seem to be bragging about having the best, fastest coverage – blah, blah, blah.
What’s the truth? Thanks as always for your insights and very large brain!
– Kelly K.
Jeff’s response: Hello, Kelly. You’re asking the right questions.
As you mentioned, I wrote in June about AT&T’s antics marketing its “5GE” service… which was really just 4G under a fancy, intentionally confusing name tag. It was a marketing ploy that ended up getting AT&T’s wrist slapped by the National Advertising Review Board (NARB).
And as I wrote about last month, even with actual 5G services, there’s still a huge difference among the carriers…
Both AT&T and T-Mobile are taking marketing-centric approaches to 5G. They’re racing to build out a “low-performance” 5G network as soon as possible so they can claim nationwide 5G coverage. As you said, they want the bragging rights.
And somewhat humorously, in many cities, AT&T’s 4G network outperforms its new “5G” network. That doesn’t make much sense at all if you ask me.
Launching at lower radiofrequencies is easier and cheaper than launching in the higher-frequency bands at 6 GHz and above. Lower-frequency bands require fewer towers, but suffer when it comes to 5G performance.
Customers will be able to use 5G devices on these networks, but they won’t find anywhere near 1 Gbps or better speeds until carriers like AT&T and T-Mobile go back to build their 5G networks on high-frequency bands capable of supporting real 5G performance.
That said, my favorite U.S. carrier right now is Verizon. Verizon has gone all in from the very beginning, building out “legit” high-frequency 5G networks. That’s where we’ll see the best experience from the promised Gbps-plus performance.
Verizon’s networks are by far the fastest of the bunch, with max speeds reaching 2 Gbps. That’s about 20 times faster than the average AT&T 4G connection.
Verizon’s latency is also the lowest of the carriers over 4G networks, with the least delay. And latency is about 90% less over Verizon’s 5G networks compared to its 4G networks.
Verizon 5G is currently available in 36 major cities around the country. If you want to experience real 5G, I recommend checking to see if Verizon covers your area.
The only disadvantage to Verizon’s network strategy is that it will take longer for its 5G networks to reach suburban areas. The network build-out will take years.
But I’m OK with that. Even when I’m not on Verizon’s 5G network, I’ll still get a strong 4G network, and I’ll have Apple’s latest and greatest iPhone, which is the most secure smartphone we can buy. And it will have the most advanced semiconductors powering it. The improved performance makes a big difference to me, so I’m willing to upgrade early.
Finally, Jeff turns his attention to 5G misinformation, and a question we often hear from readers…
Reader question: I’ve read that sufficient health studies associated with 5G frequencies and radiation have NOT been done. Your comment?
– Dean A.
Jeff’s response: Thanks for writing in, Dean.
5G is safe. I’ve discussed this in the past for my Near Future Report subscribers. For my answer, you can go right here to download a free special report.
But I’d like to address another aspect of this topic: the potential source of these questions on the safety of 5G.
You might be skeptical when you hear what I have to say, but please keep an open mind.
Deploying 5G wireless networks is such a competitive advantage that it’s become a race among countries to be the first to build out 5G. Governments around the world recognize that the sooner they build out these networks, the sooner they become more competitive as nations.
And, of course, the absence of these networks would be a severe competitive disadvantage at a national level. So it’s in the best interest of countries to build out these networks nationwide as quickly as they can.
In February 2019, Russia launched its own 5G program. But its progress on the 5G rollout is far behind the United States or China…
That’s why, last year, network RT America (formerly Russia Today) aired a segment titled “A Dangerous ‘Experiment on Humanity.’” The piece outlined how 5G is connected to everything from brain cancer, to infertility, to even Alzheimer’s, despite having no scientific support.
Keep in mind, RT is funded by the Russian government. We already know the Russian government has highly structured programs to mingle in U.S. affairs and influence public thinking. RT is widely considered a propaganda machine to support Russia’s interests.
And what better way to slow down America’s 5G rollout – and give Russia time to catch up – than to spread misinformation and doubt about the safety of the technology?
You might be skeptical. But keep in mind, 5G is expected to unleash an estimated $12 trillion in wealth in the coming years. Whichever country sets the 5G precedent will be the economic powerhouse of the next decade.
We should ask ourselves this: What wouldn’t a government (with questionable ethics) do to secure that advantage?
Either way, I keep a close eye on any legitimate research related to wireless technology. And when I discover anything of interest (good or bad), my readers will be the first to know.
That’s all we have time for this week.
If you have any questions for Jeff, or any of the Legacy experts, be sure to send them to us at [email protected].
Have a great weekend.
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Chris Lowe
October 30, 2020
Bray, Ireland