China Rattles the 6G Saber
Have you seen this wild CNBC headline?
I checked my Twitter to see if Trump had a retort, but impeachment hearings have his thumbs preoccupied right now. So I’ll say it…
This announcement is more or less saber-rattling, tech-style…
For one thing, if 5G is done right… it’ll be a very long time before we need 6G networks.
Even more, the CNBC report notes:
Vice Minister Wang Xi of the Ministry of Science and Technology said 6G is in the “initial stage, the technical route is still not clear, and the key indicators and application scenarios have not been standardized and defined.”
And then there’s still the question of where China is getting their tech from. We know from recent court filings IP theft accusations and tech bans have truly limited the R&D efforts of Chinese tech giants like Huawei.
Qualcomm’s leading wireless technology, for example, is no longer being used by Huawei or other tech giants, due to complications in the trade row.
Where will China get the tech to make a 6G network? That is, without licensing, partnering or illegally reverse-engineering others’ technologies?
Scanning the newswires has revealed nothing alluding to any of that.
So while it seems cool or unnerving, depending on how you view our relationship with China… there’s not much water to this headline…
But our old-school 5G plays are kicking butt!
If 5G Is Done Right, We Won’t Need a 6G
5G promises to increase wireless communications speeds up to 100x what we have today. The change is expected to be transformational for the global economy and will enable innovations like we’ve never seen before.
But for it to work, there need to be fast network communications from wireless antenna sites and backbone systems.
Unfortunately, delays have been a thing across the industry lately… One of the biggest stories is Apple’s delay of 5G devices as competitors roll out compatible products.
Upgrading to 5G will be very expensive and it will take time to install the necessary infrastructure, which will require not just equipment but also permitting and zoning changes. Internationally, we’re seeing a lot of delays in 5G rollouts…
All the more reason I’m not buying China’s 6G claims yet.
But here in North America the 5G revolution is only picking up steam and many companies are pivoting to get ahead of the trend.
The U.S. Sprint/T-Mobile merger, for example, has finally gone through.
You can expect the newly formed company to pick up the pace on equipment orders. For now, the company is picking up new 5G design wins in various regions.
Still Time for More Gains
About a year and a half ago I was tracking the very beginnings of the Sprint Corp. (NYSE: S)/T-Mobile (NASDAQ: TMUS) merger.
The bull argument being that if and when the deal got inked, this new company would be the second-largest wireless carrier in the U.S. and have a strong foundation to build on in the race to 5G supremacy.
From a technical standpoint, the deal makes sense. Sprint’s and T-Mobile’s proprietary technologies inherently work well together and could help very quickly and efficiently offer a great new 5G network. As such, we suggested taking a swing on both these names to expose yourself to the 5G revolution
The suggested move has paid off nicely for those who followed our advice too.
Sprint since May 8, 2018, is up over 20%. T-Mobile is up a whopping 46%. The S&P by comparison is only up 15% in the same time frame.
I believe a second surge of gains is coming once the two companies finally sign the dotted line and the DOJ stops second-guessing its own ruling on the merger.
And a third surge could come once the 5G networks are fully operational.
If you missed the surge, consider getting in ahead of the next one with these cheap 5G options.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily