Dear Reader,
Welcome to our weekly mailbag edition of The Bleeding Edge. All week, you submitted your questions about the biggest trends in technology. Today, I’ll do my best to answer them.
If you have a question you’d like answered next week, be sure you submit it right here.
Up first is an interesting question about Phase One of the 5G rollout. And one reader wants to play a part…
Hi, Jeff. Are 5G companies buying or leasing sites for their antennas? I have property on a hill and would like to make it available. Can you provide me with more info?
– Bruce C.
Thanks for writing in, Bruce. I’m glad to hear you’re interested in the 5G rollout.
As a reminder for newer readers, 5G is the next generation of wireless network technology. 5G speeds will be up to 100 times and in some cases 1,000 times faster than the average 4G networks we use today.
Our video demonstration gives you some idea of 5G speeds.
Wireless networks like 5G roll out in three phases.
Phase One: The Infrastructure Phase
Phase Two: The Devices Phase
Phase Three: The Services Phase
Right now, we are well into Phase One, the infrastructure phase. This is when network providers build and install the physical infrastructure needed to support a new generation of wireless technology.
In the case of 5G, that means towers, base stations, antennas, routing equipment, fiber-optic cable, and so forth.
And 5G is different from 4G. This new network will require significantly more infrastructure. Right now, there are an estimated 200,000 cell towers scattered across the U.S.
But 5G will require what’s known as a “small cell architecture.” We can expect five times as many base stations compared to 4G networks. For major metropolitan areas, that could mean one small cell phone tower on almost every street corner.
As for your question, Bruce…
Once wireless carriers have bought the spectrum to launch a new network, they race to launch as quickly as possible. Otherwise, they are just sitting on an unused asset that is not generating any revenue.
So they try to build out their new wireless networks as quickly as possible, starting in the areas with the densest populations – thus where they have the most customers or the most potential new customers on the new network.
When they can utilize existing infrastructure, like a tower, by leasing space on that tower, they do it. That’s much faster than constructing their own tower. And there are a few large companies whose business is exactly that – a real estate business that builds, owns, and leases locations to wireless carriers.
So, yes, wireless carriers do lease land from property owners. In other words, wireless carriers build network infrastructure on private property and pay “rent.”
According to the firm Steel in the Air – a company that negotiates these leases on behalf of landowners – rent for major metropolitan areas can be as high as $2,500 a month.
| Wireless Carrier Lease Rates in the Most Populous U.S. Cities | ||
| Metropolitan Area | 2018 Population (Estimated) | Average Cell Tower Lease Rate (PM) |
| New York | 19.9 million | $1,900 |
| Los Angeles | 13.2 million | $1,500 |
| Chicago | 9.5 million | $1,300 |
| Dallas | 7.5 million | $2,500 |
| Houston | 7.0 million | $1,000 |
| Washington, DC | 6.2 million | $1,750 |
| Miami | 6.2 million | $1,500 |
| Philadelphia | 6.1 million | $1,400 |
| Atlanta | 5.9 million | $1,300 |
| Boston | 4.9 million | $1,500 |
Source: Steel in the Air
So it’s certainly possible that a network carrier would be interested in leasing your land. It would depend on what geographic market your property is in and if your land is suitable for the network infrastructure needed.
This would depend heavily on what a wireless operator’s network design looks like in your area and whether it has some network coverage issues with its current or future 5G network.
Bruce, you could investigate this more by reviewing the data shared by Steel in the Air. Just remember that those leases tend to be over longer terms – 15 years is a common time frame.
And there have been reports of very shrewd business practices on the part of the network operators to ensure they get a good price on rent. So be sure you do your due diligence if you are interested in this route.
But there’s one more point I’d like to bring up for investors.
You don’t need to rent your property in order to profit from the 5G network rollout. 2020 is the year when Phase Two – the devices phase – gets very “real.” Current industry projections are that 300 million 5G devices will ship in 2020. That’s far too low.
I predict we will see record-setting shipments of 5G devices this year. And every one of these 5G devices will need an essential component in order to connect to these networks.
And I’ve identified the company that produces this component. That’s why this investment is my No. 1 5G stock of 2020. Go right here for the full details.
Well, I think we’ve found one of our readers’ favorite topics.
On Wednesday, I shared an insight on “quantum teleportation.” The next day, I was greeted with a flood of feedback. Some readers even thought I might be trying to pull a fast one.
Dear Jeff, your report about quantum teleportation – this goes a bit too far. This was mistimed; it would better fit to April 1.
– Gerhard G.
Dear Jeff, your report about quantum teleportation threw me off balance. Is this for real? Is this a hoax?
– G.H.
If the principles behind this technology can be dissected and better understood, perhaps we will be closer to teleport transmission of humans in time and space. Particularly with recent biogenetic research, genome information, and CRISPER advancements.
– Rochelle H.
Jeff, do you think it is within the realm of possibility that quantum teleportation could solve the problem of astronauts on Mars communicating with doctors and scientists on Earth in the case of an emergency (without the 20-minute delay in each direction)?
– William M.
Jeff Brown’s article on teleportation really hit a target with me. As a licensed doctor in alternative health care, I have used energy transfer methods for diagnosis and care.
– Gustav M.
In the near future, controlling robots on Mars or in the asteroid belt could be done in real time with quantum teleportation instead of sending a command by radio and waiting several minutes for it to be received and executed, and waiting several more to verify the action. On the other hand, AI robots may negate the need for instant communications altogether. Only time will tell.
– Michael J.
To catch readers up, I wrote that researchers at the University of Bristol had demonstrated the transmission of data between two separate computer chips using “quantum teleportation.”
This is a complex idea, but in short, the researchers were experimenting with what’s known as “quantum entanglement.” That’s when quantum particles become interdependent on each other even when they are not physically in contact.
When two particles are in a state of quantum entanglement, their states are dependent on each other… even when hundreds of miles apart. When the quantum state of one particle changes, so does the other.
Years ago, scientists were able to demonstrate quantum entanglement by separating two interdependent particles by 100 kilometers.
And sure enough, when one particle changed states, so did the other. There was no physical connection whatsoever between the two particles.
Just three years ago, researchers demonstrated quantum entanglement between one particle on Earth and another in space.
The physicists at Bristol were building on this discovery. They took two computer chips that were linked by quantum entanglement, and they were able to “teleport” information from one chip to the other without any physical infrastructure.
Now, I know our initial reaction is that this is simply too incredible to believe. But rest assured… Quantum entanglement is very real.
In fact, the research done in this space over the last few years has been one of the single most exciting developments in the world of quantum physics.
While nothing physical is being teleported, the state of the particle is being teleported from one particle to another. That means that we can “send” information without the need for physical infrastructure or networks.
And it’s not difficult to get two particles “entangled.” In fact, there are actually a few ways to achieve that. As long as scientists get them together in the first place and create the entanglement, then the particles can be separated for use.
And while I like to joke, I don’t joke about technology in The Bleeding Edge.
I read and research a lot of crazy things, but if I don’t have credible sources and scientific evidence of something, it won’t make these pages – or at the very least, I would let you all know that something is highly speculative.
This is the nature of exponential growth in technology. One minute, it seems like science fiction. Then suddenly, it’s right on our doorsteps.
Glenn Beck actually made this observation when I was a guest on his podcast late last year (catch up on that here). Speaking about his father’s observations about technology, Glenn said, “One hundred years ago, we didn’t think we’d actually go to the Moon. That was H.G. Wells stuff. But look at us now.”
Glenn is right. And the pace of technological change is only accelerating. As Glenn put it, we won’t recognize the world 10 years from now.
And my mission with The Bleeding Edge and my other research publications is to prepare readers for that future. We do this by first understanding the technology that is shaping the future and then investing in companies that are best positioned to benefit from these future trends.
There’s much more to be said about quantum computing and quantum teleportation. What’s happening now is literally the birth of a new industry. There is plenty more ahead.
Speaking of the future, let’s conclude with a great question about how to empower our children and grandchildren to succeed with the technology of the future.
Hi Jeff, your information and explanations about current and future technologies are excellent. If you had a teenager (19) who is considering going to tech school or college to learn how to work in the artificial intelligence (AI) or virtual reality (VR) industry, what institutions or schools do you think he should look into? He wants to make money; however, he is not interested in a traditional education.
– Robert F.
Thanks for writing in, Robert. As a parent, I know how important a decision our children’s education is. I will offer this encouragement: Your son is interested in one of the best career paths over the next couple of decades… AI and machine learning (ML).
And this field continues to grow. As I’ve mentioned before, there are about 2.9 times more AI jobs than there are applicants in this industry. That’s how hot the market is. And this gap is widening.
Universities are trying to catch up. Leaders like MIT and Stanford have more students interested in their AI/ML courses than they have seats in the classrooms. And Carnegie Mellon kicked off the first undergraduate degree in artificial intelligence in 2018.
Furthermore, MIT announced that it’s investing $1 billion in an AI college to produce graduates who know how to apply AI/ML to other disciplines.
The field is so in demand that AI/ML specialists with little or no industry experience can expect to make between $300k and $500k per year (in salary and stock) on average.
Half a million dollars right out of school… with no work experience. With experience, the numbers get even more impressive – oftentimes into the $1 million-plus range.
Of course, you also mention that your son is interested in taking a more nontraditional path. The good news is, there are alternatives for gaining skills to make yourself attractive to employers in this space…
One of the major trends of the future of education will be the concept of “nanodegrees.” We can think of these like a professional certification for a specific skill in AI/ML.
And there are a handful of different options for where to start learning. Here’s where your son can get started: edX (www.edX.org) is a great place to begin. A lot of the content is free, and edX is backed by MIT, one of the hot spots for AI/ML.
Coursera is another site for online learning, and there are several AI/ML courses from famous professors at Stanford available (www.coursera.org/stanford).
Additionally, there is a company called Udacity (www.udacity.com) that I really like. It offers courses that lead to nanodegrees. And it specializes in AI/ML technology.
It also offers nanodegrees in autonomous driving technology, data sciences, computer vision, deep learning, and natural language processing.
But irrespective of which direction your son chooses to go (AI, ML, VR, or even augmented reality), there is one critical skill that he’ll need in all of them. He’ll need to be a great coder. In other words, he’ll need concrete skills in programming software.
And there are some great nontraditional ways to gain those skills. I recommend having a look at General Assembly (https://generalassemb.ly), Flatiron School (https://flatironschool.com), or Hack Reactor (www.hackreactor.com).
This will at least give you some ideas of what to look for. There are other good coding boot camps like the three above, but I do know that these three are all excellent.
Regards,
Jeff Brown
Editor, The Bleeding Edge
P.S. I have one request of all readers of The Bleeding Edge. I hope you can join me on the evening of January 22.
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The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
