Congress Wants to Give Away $1 Billion
And you can get a piece of the massive payouts on the way…
In case you’ve missed the message, 5G technology is already minting a new generation of multi-millionaires and billionaires. And it’s going to get even more profitable as the networks start to come online and the real 5G infrastructure gets built out.
Early investors are already looking at the potential for 100%, 500%, even 1,000% returns from select 5G stocks. Some lucky ones have already pocketed four-digit gains from these companies. Early investors in this 5G-related company saw their shares skyrocket on just the potential the new tech could bring:
And if the promise of those kinds of gains wasn’t already exciting enough, Congress is about to add $1 billion worth of fuel (and perhaps much more) to an already white-hot fire…
Something We All Can Agree On
In another case of if you’ve been living under a rock: The United States government is still battling to keep Chinese government-run telecommunication companies out of the country.
Chinese telecommunications firm Huawei is the main cause of D.C.’s angst. The company has been accused of helping the Chinese government collect data on users — some of those users are other sovereign governments. A Chinese company helping the Chinese government spy? What a surprise.
Another thing that's not surprising in the least is that our government doesn’t want Huawei anywhere near American communications. But the problem with that is there’s no good alternative to Huawei... not yet, at least.
The company gets tons of help from the Chinese Communist Party (CCP), which means it can spend tons on R&D and sell its products cheaper and with better financing options than its European rivals Nokia and Ericsson. The U.S. doesn’t even have a dog in the fight as far as 5G networking companies are concerned.
That’s a problem. It’s hurting our chances of getting allies to follow suit and drop Huawei and giving the Chinese the chance to dictate the rules 5G will be played by. Plus, it’s going to make it nearly impossible for remote regions of the U.S. to get affordable 5G coverage.
So, a bipartisan group of U.S. senators wants Washington to subsidize companies that could counter China’s advances. Senator Richard Burr (R., N.C.) and Senator Mark Warner (D., Va.), who lead the Senate’s intelligence committee, introduced the bill this week.
It’s also sponsored by Mark Rubio and supported by numerous others across party lines. Apparently keeping China from spying on us is one thing everyone in a very divided legislature can agree on.
As Senator Rubio put it, “We are at a critical point in history for defining the future of the U.S.-China relationship in the 21st century, and we cannot allow Chinese state-directed telecommunications companies to surpass American competitors.”
D.C.’s Billion-Dollar 5G Booster Fund
The proposed bill is called the Utilizing Strategic Allied (USA) Telecommunications Act. It calls for more than $1 billion to be set aside and solely used to help American innovation overtake China’s dominance in 5G technology.
The money wouldn’t even have to come out of taxpayers’ pockets for this one. The government already held broadband auctions where telecom companies bought wireless frequencies. Over the next five years, the FCC will be auctioning off even more wireless spectrum.
At least $750 million of the proceeds from the auctions would go to the bills. But that number could be far higher if bidding heats up. The proposed fund would get the larger of $750 million or 5% of the total proceeds. So, if the proceeds are greater than $15 billion, the fund would get even more.
The FCC already has two major spectrum auctions lined up for this year that could raise tens of billions of dollars, and there are four more years of auctions coming. It’s almost guaranteed the total sales will be more than $15 billion, which means more money to the fund.
Winning Hearts Wallets and Minds
But the Act doesn’t stop at America’s borders. Remember, we don’t want our friends getting spied on either. And we’ve asked our allies to stop using Chinese telecommunications providers.
But a lot of our allies aren’t as rich as us as a nation, and they’re thinking with their wallets. Huawei is the cheapest option. Thanks to the billions it gets in help from the CCP, it’s got the best networking gear.
So, it’s been tough to get our friends to switch, even though they know the danger of doing business with the Chinese government. We've won their minds by showing them what China is capable of. Now we need to win their wallets, too.
And that’s why the USA Telecommunications Act includes a stipulation for at least another $500 million in funding to help support purchases of non-Chinese equipment abroad. We’re trying to help our less-fortunate friends make the switch, but it’s not 100% noble.
These funds would also help U.S. representatives play a bigger role in drafting international engineering standards. That’s another area where Chinese companies have become more active. It’s a place the U.S. needs to have more influence if we want the world to operate on non-Chinese networks.
So, it’s not a long shot that the $500 million turns into far more in our race to beat China to 5G.
Everybody Gets a Share
But these funds aren’t just going to go to companies working in the 5G space. That’s, of course, where they’ll start, but through a little-known pass-through entity, a select group of individuals is going to get a major payout as well.
You see, back in 1960, Dwight D. Eisenhower signed a little-known bill into law. It’s sometimes called the Cigar Excise Tax Extension, even though its most important goal had nothing to do with cigars at all.
The goal of this law was to democratize wealth creation. Up until that time, the means to create real wealth was controlled by a few super-wealthy families. They say you’ve got to spend money to make money. Regular folks just didn’t have the money it took to invest in the tools that create fortunes.
So, Ike passed a law that gave the rest of us our shot at generating the kinds of fortunes that had only been within reach of families that already had fortunes.
It’s thanks to that law and one of the entities it created that you can get a piece of the government's billions in 5G subsidies.
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You’ve Got to Pay to Play
You can’t make more land. And, as the world grows, we need more space. It’s a finite resource with the potential for infinite price appreciation.
What’s true with global population is also true with wireless technology. As it grows, it needs more space. 5G is going to need far more real estate than its predecessors because it relies on millions of small antennae affixed all over the place instead of the gigantic ones on equally massive towers we use now.
In order for any 5G network to be operational, it needs to be able to connect to data storage centers so that users will have a place to keep and access all that new data we'll be creating. Those data centers are connected to the outside world via high-speed fiber networks.
That makes those networks the best places to mount those antennae. These are simply networks of fiber-optic cables that already facilitate high-speed data transmission. They’re typically located near major metropolitan areas where more data is created and more data centers exist, but the real estate is very pricey.
So, they’re very expensive to build if you don’t already have them. And while all of the major U.S. wireless carriers have some kind of fiber network, there’s one tiny unknown company that’s got more miles than all of the carriers combined.
In fact, at around 6 million miles, it’s got more than all of its competitors put together.
And as you can see from the following map, it’s got those networks in some of the most strategic places across the country, from LA to Silicon Valley; Houston, Chicago, and most of the Mid-West; and all over the East Coast, from New York all the way down to Florida.
All those millions of miles of fiber are the ideal locations to mount the millions of antennae needed for the carriers to get full 5G networks built. They’re worth millions of dollars to those companies. That's why they've all already got multimillion-dollar contracts in place.
These kinds of networks are this company's main focus so it can expand them much faster and easier than the wireless companies struggling to launch 5G or pretty much anyone else, for that matter.
Since it’s got the network all the carriers need and the ability to expand it at will, this small firm can basically charge anyone who wants to get on the 5G network whatever it wants to charge and they'll pay it — that includes the United States government.
The 5G Toll Collector
Now we’re back to Ike’s law. You see, this company is all but guaranteed to get a massive share of the 5G government payouts to come. In fact, it’s already getting paid millions by certain government agencies.
Thanks to Ike’s law, it has to share the majority of that money with you and not just the money it gets from the government’s new plan to drive 5G expansion; but from all of the wireless carriers who are scrambling to get on its network, too.
It’s going to add up to mountains of cash for smart investors who get in before the rank-and-file world hears about it. Since it’s also a company, you’ve got the price appreciation, too.
This company is still relatively small and almost completely unknown because nobody is looking for 5G infrastructure companies. They’re all too focused on the new technology 5G will allow us to have, like smart cities, virtual reality, and driverless cars.
But all of those advances hinge on one thing: an operational network. As soon as investors realize that this company has the biggest in the country, its share price is going to go through the roof.
The company trades for less than $10 today, but by the end of this year, it could be as high as $100.
Secure Your Subsidies Today
5G has obviously caught investors’ attention. Now it’s square in the sights of the U.S. government, too.
With billions already flowing in from private and public companies (AND billions more about to start flowing in from D.C.), you stand to make an unbelievable fortune by investing in the right companies.
One company already owns the most extensive network for deploying 5G across the U.S. It’s going to see a large share of the public, private, and government money flowing into the sector.
That company not only costs a fraction of what much bigger and more poorly positioned competitors cost, it also pays shareholders to wait for the gains almost guaranteed to come — and it’s required by law to do so.
Opportunities like this just don’t come around every day. And when they do, they don’t last long. So, take a moment today to learn about the 5G tollbooth company.
This report will give you all the information you need to get on board before the rest of the market finds out. Once you read it, you’ll be on your way to collecting a share of the 5G tolls and the massive government subsidies about to start rolling in.
And, even better, you’ll be set up to watch your shares shoot up 100%, 200%, maybe even 1,000% as the 5G tollbooth company hits the big time.
But don’t wait to check out this opportunity; it’ll pass you right on by.
With every day, it’s more likely that analysts will start boosting price targets and trumpeting buy recommendations. As soon as that happens, you can kiss your chance of early investor profits goodbye.
Click here now and get all the information. That way you can sit back this weekend and smile knowing you’ve secured your share of those billions in government subsidies and 5G tolls.
To your wealth,
After graduating Cum Laude in finance and economics, Jason analyzed complex projects and budgets for the U.S. Army. Then, at Morgan Stanley, he led the assistants' team for the North American repo sales desk, responsible for hundreds of multibillion-dollar trades every day. Jason is the founder of Main Street Ventures and an editor for The Wealth Advisory income stock newsletter. He also contributes regularly to Wealth Daily. To learn more about Jason, click here.
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