The T-Mobile-Sprint Merger Isn’t Really About 5G
— May 4, 2018
By Nicholas Economides
To start, a fully developed 5G network is at least four years away. At present, 99% of the 5G electromagnetic spectrum is in the hands of the U.S. government, which has not determined any procedure for allocating it to telecom companies. AT&T and Verizonhold the miniscule remaining amount. So wide-scale investment in 5G is far from imminent.
In addition, 5G uses a spectrum that is inferior to the one used by 4G/LTE. 5G cannot penetrate walls, so its transmission cells need to be placed inside buildings, requiring substantial capital investment and a lot of time.
Read the full article as published by Fortune.
Nicholas Economides is a Professor of Economics at NYU Stern School of Business.