Is a Smartphone for 3.5 GHz Wireless Network in the Works?

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Major U.S. telecom operators are currently exploring ways to commercialize usage of 3.5 GHz unlicensed wireless spectrum. Notably, the 3.5 GHz radio frequency is being considered in many parts of the world for the upcoming 5G wireless standard, thereby increasing its chances of providing spectrum globally.

In Aug 2016, several leading tech giants formed an alliance called "Citizens Broadband Radio Services (CBRS)" to explore low-cost ways to provide wireless service using unlicensed 3.5GHz band. Notable among them are Google of Alphabet Inc., Qualcomm, Intel, Ericsson and Nokia. In practice, CBRS alliance works toward defining standards that would allow wireless carriers, enterprises, venue owners and others to deploy 4G LTE networks in the 3.5 GHz band.

According to a recent report by FierceWireless, a projected timeline from the CBRS alliance showed that the organization expects at least one handset to be approved by Dec, 2017. However, the timeline can be extended further.

Verizon Communications Inc. VZ is planning to deploy small cells – both low power and high power – using the 3.5 GHz band. T-Mobile US Inc. TMUS applied to the Federal Communications Commission (FCC) for an experimental radio license to test 3.5GHz equipment in Washington State. Meanwhile, in Mar 2017, the FCC awarded AT&T Inc. T a license to test a 3.5GHz network.

Sprint Corp. S has also joined the bandwagon. Small-sized U.S. wireless service provider United States Cellular Corp. USM recently submitted an application to the FCC for a six-month special temporary authority (STA) to conduct trial runs in the 3.5 GHz band in some areas of Maine and North Carolina.

All five stocks mentioned above currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The increase in adoption of small cells is due to the inconvenience of installing large towers in inaccessible areas. Verizon stated that the small cells will be used to augment its existing 4G LTE and upcoming 5G network and will primarily concentrate on high traffic locations like a business district or shopping mall. Small cells will increase voice capacity and data speeds as well as complement wireless service provider's LTE infrastructure.

Using small cells in unlicensed 3.5 GHz band will thus significantly reduce cost of operations for the wireless operators. However, the wireless standard will remain unutilized until we get effective smartphones capable of receiving this radio frequency.

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AT&T Inc. T: Free Stock Analysis Report

Sprint Corporation S: Free Stock Analysis Report

Verizon Communications Inc. VZ: Free Stock Analysis Report

T-Mobile US, Inc. TMUS: Free Stock Analysis Report

United States Cellular Corporation USM: Free Stock Analysis Report

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