Today another teaser pitch from George Gilder caught my eye, this one a pitch for a “weird device” that turns out to be a spiel about increasing wireless data usage and the next generation of WiFi technology. He’s selling subscriptions to the George Gilder Report, which is his entry-level newsletter ($79/yr).
Here’s the final bit of urgency from the order form about what he’s offering here, just to start you with a little summary…
“My brand-new report Three Spectrum Millionaire Makers, in which I reveal the names of the three stocks I expect to soar as a result of the Federal Ruling. (Remember, last time it took just two months to create one of the greatest stock opportunities in American history.)”
The big picture argument is that the US is going through a telecom revolution akin to the mid-1980s, when spectrum was initially freed up for cellular telecom through the auction process.
“Docket 81-413 was a seminal event in American history.
“Moments like that don’t come around very often.
“But one occurred very recently – on July 27th, 2020.
“On that day the FCC opened up NEW bands of unlicensed spectrum.
“One that’s FOUR TIMES bigger than the spectrum liberated in 1985.
“This time around it’s known as Docket 18-295.
“And though it’s not the sort of thing that makes front page news…
“It has the technology world buzzing.”
And he includes a couple quotes from bold-face names in technology:
“Facebook’s Director of Wireless called it ‘clearly one of the most important wireless announcements in a long time’.
“Broadcom’s Vice President of Marketing said it’s ‘a definitive moment in US wireless history… the most substantive decision any Commission has made on unlicensed spectrum in almost 25 years’.
“Intel called it the ‘most significant contribution to Wi-Fi in nearly 20 years’.
“Apple said ‘it sets the course for the next generation of Wi-Fi networks’.”
So that’s the big-picture driver, the FCC announcement earlier this year that the 6 GHz band will be opened up to use by WiFi networks, which will free up a lot of new bandwidth for unlicensed operators (like, your own hot spot… or the larger WiFi networks at your local football stadium or shopping mall). The common terminology here is that we’re moving on to the next generation of Wi-Fi networks, called Wi-Fi 6E, which will be 2-3X faster than current Wi-Fi networks, with the 6 GHz spectrum allowing faster data transmission than existing Wi-Fi networks, and increase the bandwidth available by offering up a broader band of usable spectrum, helping to ease congestion. Wi-Fi 6 is available now, using the latest and better wireless standards, but devices that use Wi-Fi 6E, which adds the capability to use that newly available 6 GHz spectrum, are just beginning to be available now and expected begin to impact the market in a meaningful way early next year — though it might take a while to make a difference, since the new spectrum will only be usable by new routers and devices that have upgraded hardware.
Here’s some more from Gilder on this big shift:
“And that’s where the technology hidden inside THIS device comes in…
“Inside is a computer chip that was built within a month of the FCC’s decision.
“And it allows new technology to access – and SHARE – the 6 GHz part of the spectrum for the very first time.Are you getting our free Daily Update
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“If history is any guide, this may well prove to be the single most valuable technology of the 21st century.
“So much so that every single major tech firm in America is backing it….
“To be clear: these companies are usually direct competitors.
“But in this one instance… they’ve teamed up…. the list runs to nearly 800 major multinational corporations…
“… hundreds of multi-billion dollar companies are about to RUSH to use the new bandwidth the FCC just unlocked.
“In fact, it’s going to be a stampede…”
And that’s where we’re apparently going to see riches flowing…
“This will kickstart a tech ‘arms race’ to dominate the market…
“In the next six months, every major tech firm in the world will race to get to market first.”
How do we do this? Who’s going to make the money? Here’s how Gilder puts it:
“See, your phone or router can’t simply tune in to the newly-opened spectrum.
“To access this “virgin territory,” it needs special technology….
“The companies that make spectrum sharing possible are effectively the “gatekeepers” of the new industry.
“They’re the ones that make everything else possible.
“History proves… these firms were some of the best performing stocks in the world last time this happened.”
And he sees this new surge of faster broadband networks creating hundreds of billions of dollars in new wealth as technology marches forward, inspiring new use cases and new products, and driving adoption of more connected devices, which is essentially the same “Internet of Things” and “everything is connected” future we’ve seen evangelized for years now.
Who wins? Well, after all the big picture “futurist” projections that are really what made George Gilder famous, we do get to some specific hints about investments he likes as a play on this future… he packages that as a special report he calls “Three Spectrum Millionaire Makers,” so what kind of details does he include to tantalize us (and feed the Thinkolator)?
“Chances are, you’ll see new routers designed specifically to work in the new part of the spectrum. (Netgear and Linksys are already developing hardware. And Intel says it’ll have chips ready for January 2021.)
“That gives you – at the outside – a few weeks before this story breaks out into the open.
“But don’t think you can wait around until then to make your move…
“You see, I’ve discovered that the computer chips required to tap into the new 6 GHz band are already available on the market right now.
“I’m betting they’re actually inside new “Wi-Fi 6E” routers already.
“And they’re made by a company that already supplies high end computer chips to some of the biggest companies in the world.”
More about that stock: