Kerrisdale Capital on the Pros and Cons of 5G Network

Generations of data technology has rapidly evolved from 3G to 4LTE, with a 5g network on the brink of release. The 5G network has already been issued in limited cities across the country, but we may see it become more mainstream in 2020.

I am Sahm Adrangi, a short activist and chief investment officer of Kerrisdale Capital. At Kerrisdale Capital, we focus our efforts on reviewing and publishing research in a range of industries, including the telecommunication sector. Today, I Sahm Adrangi, will discuss the advantages and disadvantages of a 5g network.

Adrangi on the Advantages of 5g

The fifth generation of wireless network has been in development for nearly a decade, and it has promises of dramatically faster speeds and instantaneous communication. With it’s incredible potential, here are some benefits 5G offers.

1.     Increased Bandwidth

Bandwidth is the space that a user has while using data on their smart devices for downloading files, surfing the web, or watching videos. The lower the bandwidth, the slower the speed is. 5G is going to offer an increase in bandwidth, so users don’t feel as though they are competing for data, especially in crowded areas such as the airport. More bandwidth means devices will likely become faster and more versatile.

2.     Faster Speed

Slow speed and loading will become a thing of the past with the 5G wireless network. Users will have the ability to download files, watch videos and surf the web at blistering speeds. There will be more networks available for each individual device than ever before. Multiple users in one area won’t crowd out the network causing the slower speeds of today’s 4G network. There are also whispers that better battery life will come with these faster speeds.

3.     New Technology

5G network is rumored to run at speeds thousands of times quicker than current networks. As speed has increased, new technology in smart devices has erupted to perform tasks that could traditionally only be performed on desktops. This dramatic increase in network speeds could open doors in smart device technology that has never been available in the past.

Adrangi on the Disadvantages of 5g

As with any new development, there will be bugs. The release of this new 5G coverage may cause problems in areas you would least expect.

1.     Less Coverage

As bandwidth increases, the coverage radius of cell towers decreases. In other words, a network that doesn’t require as much bandwidth is able to cover an immense territory with fewer cells, such as the 3G network. More cell towers are going to be required to have the same amount of coverage as the previous generation as bandwidth increases. At first, there may be a drop in coverage because of the lack of cell towers as this network rolls out.

2.     Problems with Radio Frequency

Radio Frequency is used for communication across many current devices including radios, cell towers, and satellites. The 5G network is going to run at a frequency of 6 GHz, which is the same frequency that are crowded out by other devices like satellites. This poses a risk of overcrowding the network from other signals already using this level of frequency.

While many people await the long anticipated 5g network, the infrastructure simply isn’t yet available in every city, state, and country for widespread use. The 5g network is something that I Sahm Adrangi of Kerrisdale Capital, have discussed in reports in the telecommunication sector. My research with Kerrisdale Capital aims to amend broadly held truths and misconceptions within a variety of companies and their fundamental business prospects.

About Sahm Adrangi

Sahm Adrangi founded Kerrisdale Capital Management in 2009. He is known as a short activist and for publishing research. Mr. Adrangi shares his firm’s view on stocks, including overhyped shorts and under-followed longs. His research is shared on a wide variety of industries, but in recent years, Kerrisdale Capital has developed areas of expertise in the biotechnology, mining, and telecommunications sector. Mr. Adrangi has met with the DCC and filed ex parties as part of Kerrisdale’s broader education efforts.

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