Three Stocks Powering The 5G Revolution

How 5G Technology Is Changing Our World

We’re in the midst of a communications revolution. The current phase, known as 5G, refers to the fifth generation of wireless communications. This is a world-altering event and investors need to understand how and why the world of communications is changing. There will be some big winners, and naturally, some big losers as well.

First though, let’s run through the previous four generations. First generation were the old cellphones of the 1980s. They were definitely cool, but they could do little more than make a phone call. How ironic is that today the telephone feature is one of the least-used applications of cellphones.

With the second generation of cellphones you could actually a text message and even some pictures. Sure, it wasn’t great, but it got the job done. But one important feature of 2G was that it used a lot less power than 1G. That meant smaller batteries which meant smaller phones. A lot smaller.

Next came 3G. This was when you can finally stream video over your phone. Or I should say that you could stream reliably. This is important because the age of 3G coincided with the tech boom of the late 90s and early 00s. We had tons of investment happening at once.

I won’t go much into 4G LTE, (LTE stands for Long Term Evolution and refers to the technology used to arrive at 4G speeds) because you’re probably using 4G LTE right now to read this. But the important point is that 4G gave user a ten-fold increase in speed over 3G.

The arrival of 4G has changed so much of how we live. For example, Uber only makes sense in a 4G world. Just about any company you can think of in the “gig” economy owes its life to the high speeds of 4G.

The fact to understand is that there are lots of technologies out there, but they only make sense with improved communications. That’s where 5G comes in.

Investors need to understand that 5G does three things.

  1. Faster speeds
  2. Lower latency
  3. Connects more devices
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Disclosure: None.

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