The former chairman of the Federal Communications Commission…
Warns that the U.S. must do more to WIN the race to launch 5G networks.
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The U.S. is falling behind on the rollout of 5G networks.
“The imperative here is to get lots of spectrum into the hands of people who will build 5G networks,” says Reed Hundt.
Hundt was the chairman of the FCC from 1993 – 1997. And last week he took to CNBC to reveal how America can get 5G technology back on track (go here for details on the top 5G stocks).
First, the merger of Sprint and T-Mobile must be approved.
14 state attorneys general have brought a case to federal court to STOP the merger of Sprint (NYSE: S) and T-Mobile (NASDAQ: TMUS).
The merger of these two companies will make it easy for 5G rollout to occur more quickly.
Second, the U.S. government needs to release spectrum to the private market.
The government and military are holding on to vast amounts of 5G spectrum.
Hundt argues that spectrum must quickly be released from the “regulatory swamp” to accelerate expansion.
Specifically, this can be done by auctioning off spectrum that’s not being used by private companies. Plus, the military could also auction off some of its unused spectrum.
The FCC is currently operating a 5G auction that started on Dec. 10. Plus, another auction is expected in early 2020.
The current 5G spectrum auction is at nearly $2 billion. And that’s just within the first week of bidding.
At this pace the auction is expected to bring in $3 billion (go here to see what stocks will profit).
This indicates extremely strong demand for new spectrum from America’s biggest wireless carriers.
Spectrum is required for these companies to roll out 5G nationwide in 2020. And they’re going to great lengths to assure that they have ample amounts of spectrum to make this happen.
Strong auction results could send shares of these stocks surging.
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