The Sprint and T-Mobile Merger Is a Massive Catalyst for 5G Stocks

Growth investors are always looking for the next explosive industry, and the biggest opportunity right now is in the massive 5G industry.

Of course there will be skeptics, but evidence of just how big 5G will be is everywhere.

Most recently, shares of Sprint Corp. (NYSE: S) and T-Mobile US Inc. (NASDAQ: TMUS) spiked when the chair of the Federal Communications Commission (FCC), Ajit Pai, said a merger of the two would be in the best interest of the public.

Sprint gained 17% earlier this week on the mere hope of the deal reaching a conclusion.

And what a conclusion it will be.

Once joined, the Sprint T-Mobile combination will be poised to build a massive 5G empire using Sprint's 5G licenses.

No wonder both stocks were up so much.

Those gains are only the beginning. In fact, this merger will be a massive catalyst for all 5G stocks...

The excitement comes from the promise of 99% of the country being covered by 5G within six years of the deal being finalized.

The even bigger deal for the FCC is the 90% rural coverage that comes from approving the transaction.

The skeptics of course worry about the decline in competition.

When Sprint and T-Mobile combine, the market will be dominated by just three companies.

Is that enough for legitimate competition?

The FCC is recommending that Sprint divest itself of its Boost business to address such concerns.

The Department of Justice (DOJ) may not be so convinced.

Staff at DOJ don't think much of the deal in terms of consumer benefit.

On Wednesday, they recommended that the deal be rejected.

Of course, shares of Sprint and T-Mobile tumbled on the news. Still, T-Mobile stock is up almost 3% since last week, and Sprint is still up 15%.

Don't worry - the deal in some way, shape, or form will be approved.

And here's what it will mean for 5G stocks...

Why We're So Bullish on 5G Stocks After This Merger News

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The volatility in share price for both Sprint and T-Mobile following the DOJ news tells me the deal is a major catalyst for the entire 5G industry.

Stocks in the 5G group are going to experience a huge rush when the deal is finally approved.

And the deal is necessary too.

Big evolutionary change requires huge investment at the start.

A combined Sprint and T-Mobile is sufficient to get the job done.

The promise of full coverage in a mere six years is incredibly important.

Two of the largest industries poised to benefit from this will be autonomous driving vehicles and healthcare.

Both will require huge amounts of data to be transferred along the network at high rates of speed.

That data transfer has to be reliable.

For example, Apple is making a big bet on its wearable device becoming a health monitor and diagnostic tool.

The life and death consequences of that proposition require zero margin for error.

That's the promise of 5G, and there can't be gaps in coverage, otherwise bad things can happen.

That fact alone is why there is a high degree of probability that the Sprint/T-Mobile deal goes through.

How else will 5G blanket the country reliably?

It's not going to happen.

When DOJ staff recommends rejecting the deal, what they are really saying is they need to make sure there is competition in the mobile space.

How that exactly happens has yet to be revealed, but there is a ton riding on them figuring out a way to address the competition concerns.

Fortunately for those looking to own 5G stocks, there is time. It will take several months for the DOJ to give its final blessing to the transaction.

When that happens, 5G stocks could really take off.

5G Is Coming: The Breakthrough of the Century Could Rest on This $6 Stock

CNBC reports that this opportunity is worth $12.3 trillion... and it's gearing up to make an appearance all over America.

In fact, some of these devices are showing up right in your neighborhood - and I'm willing to bet you didn't even notice.

Our Silicon Valley insider mapped out all the details in this report.

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