On April 1, T-Mobile US Inc. (NASDAQ: TMUS) closed its acquisition of Sprint and, with that, the whole wireless landscape in the United States changed.
This merger will make 5G more accessible to millions of people at a time when video conferencing, streaming, and Internet usage is skyrocketing.
And it did this with one simple move - access to spectrum.
Without getting too technical and just giving you the most important details, there are three different kinds of spectrum: low-band, mid-band, and millimeter wave (mmWave).
Every carrier uses a different combination to provide wireless signals to its customers, and each type of spectrum offers different tradeoffs, which range from faster speeds to better coverage.
In this case, T-Mobile had mostly slow low-bands with better coverage and only a limited presence in the fast mmWave spectrum.
Combined with T-Mobile, Sprint was able to fill the gaps with its own mid-band and mmWave spectrum coverage, creating better 5G capabilities for everyone on its network.
But that's just part of the story.
This merger is creating a potential profit opportunity in 5G that'd you only know about by diving into the details about the merger...[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
As a condition of the merger agreement between Sprint and T-Mobile, an entirely new standalone 5G network is being created.
With the ability to start completely from scratch, this new network will not have the difficulties of integrating into older network technologies.
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The best part about this is that this company believes it can save billions on its network by using virtualized network infrastructure.
Who is doing all of this?
DISH Network Corp. (NASDAQ: DISH).
Over the last decade, DISH has spent around $20 billion acquiring a treasure trove of high-quality spectrum across the country that can be used for 5G.
And when I analyzed the nitty-gritty details of the merger, which was approved on April 1, DISH committed to "deploy a 5G broadband network capable of serving 70 percent of the U.S. population by June 2023."
Here's what else is happening.
The deal between Sprint and T-Mobile mandates that DISH will take ownership of Boost Mobile, Sprint's prepaid wireless service brand.
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Tom Cullen, DISH's EVP of corporate development, said that preparing for the Boost integration represents the first step in its wireless network plans, which would give it millions of customers.
This would then be followed by the "finalization of DISH's vendor selection and assembling of the full 5G network plan."
With $10 billion earmarked for network expansion and its first 5G vendor - Mavenir - already selected, DISH is already well on its way to capitalizing on the national rollout of 5G.
Some analysts are very bullish on the long-term outlook for DISH.
In fact, one major sell-side analyst has a price target of $53 for DISH, which would mean over 100% upside even after its recent run.
And don't forget to check out my latest presentation all about this six-figure opportunity in 5G...
You see, 5G isn't just an Internet upgrade anymore. The FCC just injected an unprecedented amount of money to roll it out faster than 1G, 2G, 3G, and 4G combined.
But this isn't just a positive sign for the roughly 162 million Americans who've recently experienced slowing Internet. If our projections hold, you could net a huge payout by year's end. Click here to find out how...
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