Why Sprint Is Optimistic about 5G
Sprint on 5G
In the telecom (telecommunications) space, 5G (fifth-generation) technology is creating a lot of interest. Wireless data speeds are expected to improve ten to 100 times compared to 4G (fourth-generation) technology. Sprint’s (S) management believes its 2.5 GHz (gigahertz) spectrum will perform like lowband spectrum in 5G builds. The company is planning to launch its commercial 5G services and devices by the end of 2019. It anticipates being more aggressive with its 5G build-out as standards are set and finalized.
During the Wells Fargo Media & Telecom Conference on November 8, 2017, Marcelo Claure, Sprint’s CEO (chief executive officer), spoke about the company’s 5G strategy. He said Sprint is well positioned for 5G with existing spectrum assets and technology. Specifically, the company is looking to leverage its 2.5 GHz spectrum, multiple carrier aggregation, HPUE (High Power User Equipment), and massive MIMO (multiple-input and multiple-output) technologies to build its wireless network download speeds of 1 Gbps (gigabit per second).
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AT&T is a competitive player in the 5G market
AT&T (T) is a competitive player in the 5G arena. It constantly strives to get ahead of the curve by gaining spectrum advantage. During the AWS-3 (Amazon Web Services 3) spectrum auction held in early 2015, AT&T was the highest bidder with additional spectrum worth $18.2 billion.
After 2008, the AWS-3 spectrum auction became an extensive auction conducted by the FCC (Federal Communications Commission). As you can see in the above graph, Verizon (VZ) and T-Mobile (TMUS) also participated in the AWS-3 spectrum auction, sealing deals worth $10.4 billion and $1.8 billion, respectively.