Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) have temporarily agreed to halt their nationwide 5G rollouts near the nation’s busiest airports while federal regulators work to address safety concerns.
Airline and telecom executives and the Federal Aviation Administration (FAA) have been in an ongoing tussle over how to deploy 5G technology near the nation’s busiest airports.
The Federal Communications Commission sold the C-band licenses to use for the wireless technology a year ago and brought in $81 billion at public auction from providers for the privilege.
As I mentioned last week, the FAA raised concerns in December that a part of the 5G wireless spectrum called the C-band could interfere with aircraft radio altimeters, which are used to help pilots land their aircraft in bad weather conditions. If the pilots can’t see the runway, they can’t land the planes, which, in turn, could cause flight delays and flight diversions. It looks like that is now happening, as several international airlines said they’d started suspending flights to the U.S.
In response, AT&T and Verizon had recently agreed to limit their cell towers’ signals in buffer zones around some of the largest airports in the country. They also initially paused rolling out expanded 5G implementations, until yesterday.
That gave the FAA time to craft new flight restrictions to protect aircraft from any possible interference from 5G.
By Sunday, however, the FAA said only 45% of the U.S. commercial fleet had been cleared to land in low-visibility conditions at 48 of the 88 airports with the most potential for any impact.
The agency said more clearances are on the way in the days ahead.
Meanwhile, AT&T and Verizon agreed, again, to further delay launching the service near airports until the regulatory issues are resolved.
Interestingly, 5G wireless has opened up in the C-band in dozens of nations across 175 networks… without a single reported problem related to aviation.
“We are frustrated by the FAA’s inability to do what nearly 40 countries have done, which is to safely deploy 5G technology without disrupting aviation services, and we urge it do so in a timely manner,” an AT&T spokesperson said Tuesday.
5G Is Full Steam Ahead
The bottom line is that while the headlines might make it sound like terrible news for 5G’s rollout, that is just not the case. In the long run, this will end up being one more minor blip on the rollout of the transformational new technology that is 5G.
It’s why I’m going “all in” on 5G, as I recently discussed during my Big Bet Summit.
The fact of the matter is that both Verizon and AT&T switched on about 90% of their new 5G networks according to the schedule on Wednesday.
Verizon said the company will provide 90 million customers access to its new 5G service this month in cities like New York, Los Angeles and San Francisco. Up to 75 million customers will have access to AT&T’s new 5G service by the end of the year. T-Mobile US Inc.’s (NASDAQ:TMUS) mid-band 5G service has been available since 2020 and covers 186 million people in the U.S.
And 5G adoption keeps ramping up across the globe at a blistering pace.
Thirteen new countries rolled out new 5G deployments over the year prior to Nov. 30, bringing the total to 112. Meanwhile, the total number of 5G deployments shot up 391% over the same timeframe to 85,602.
While the vast majority of the fastest 5G speeds are available outside America right now, the U.S. has the widest 5G availability, with 49% of the population having access to a 5G service.
Ericsson (NASDAQ:ERIC) predicts 5G will tally 600 million subscribers by the end of the year, while CCS Insight estimates manufacturers will sell 900 million 5G devices in 2022, or about half of the total.
Phone makers are taking advantage of new, mid-tier chips, like those made by QUALCOMM Incorporated (NASDAQ:QCOM), to build more economical models that can sell for below $300.
Apple Inc. (NASDAQ:AAPL) is reportedly going to release a new iPhone SE with a new processor and 5G capability that will be cheaper than flagship models. Samsung, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) Google, Motorola Solutions, Inc. (NYSE:MSI), and OnePlus also have more affordable models on the market.
But 5G phones are just the beginning for this technology.
This technology will also enable billions of streaming devices to connect, interact and collect data from each other, unlocking untold levels of productivity and innovation for consumers, industries and governments.
Big breakthroughs stemming from other groundbreaking technologies like artificial intelligence (AI), driverless cars and augmented and virtual reality will finally get the lightning-fast connectivity required to realize their full potential.
The testing to bring these features to reality has already begun.
Recently, in India, a telecom operator partnered with Tata Consultancy Services Limited (NSE:TCS.NS) to demonstrate how 5G will allow for remote robotics operations and vision-based quality inspections in manufacturing.
Verizon used its 5G system to test edge computing with wearable display firm Vuzix Corporation (NASDAQ:VUZI) to deliver an augmented reality experience in sports and gaming.
And Thailand’s largest hospital system recently launched the Siriraj World Class 5G Smart Hospital in partnership with Huawei to bring improved access to healthcare services in remote parts of the country.
During my Big Bet Summit, I explained in detail how 5G will help those different technologies, as well as the stunning impact it will have on the U.S. economy. In case you missed it, you can watch a replay of the Big Bet Summit here.
And to help folks prepare themselves for the 5G boom, I created a special model portfolio I call the 5G Hypergrowth Portfolio: Six Stocks to Incredible Wealth. Each company is directly in line to profit from 5G. For full details, click here.
P.S.: I just unveiled another 5G stock today, after the market close. It boasts superior fundamentals, as it posted triple-digit earnings and sales growth for its third quarter in fiscal year 2021. For the fourth quarter, analysts are expecting triple-digit earnings growth and double-digit earnings growth. This 5G company will announce its latest quarterly results next Wednesday, Jan. 26, so now is a great time to jump in before its earnings results dropkick and propel the stock higher. If you join Breakthrough Stocks today, you’ll have access to this new recommendation. Simply click here to join Breakthrough Stocks now.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
T-Mobile US, Inc. (TMUS)
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.