Re: 5G Can't Come Soon Enough for These Stocks -- Barrons.com
Not entirely positive that there is a great future benefit of 5G for tower stocks. Existing locations may no longer be optimal for the new networks->less valuable. Wireless operators may come under pressure to put in large numbers of shorter range/lower power antennae. Very high frequencies require a rethink of system architecture. High frequencies with poor building penetration mean want more indoor very short range antenna stations. Initial installations likely to be on towers out of institutional inertia. But, eventually, cell carriers will want to optimize their networks. It is easier to jettison obsolete tower locations if they are leased and not owned. e.g. would it make more sense to put a low power antenna on every telephone pole in a dense suburb than trying to juggle signals among more distant high power towers? This is particularly an issue with the allocation of 5GHz plus frequencies. These are similar to satellite TV. Heavy rain can cut the signal as can tree branches in the way. Boosting power can help, but alternatively, putting up a lot of lower power access points closer together may be a superior alternative.