G3: The Next Innovation
matter how bad the market or economy looks there is always
some new invention or technology in development that will
put a smile on the faces of inventors and whip investors into
So, what is the next innovation or enhancement that
will become commonplace?
Itís third generation wireless communications.
Cell phones and wireless voice communications for the
masses have already been with us for a decade.
This first generation analog cellular phone technology
has been enhanced and led to new digital and web-enabled technology.
Where previous generations of wireless technology focused
on voice communications, the technology and standards surrounding
third generation wireless communications focuses on the high-speed
transmission of data.
Donít worry about what will happen to your voice phone
calls, they are just seen as another type of data.
The power of third generation technology is its shear
Most of us are too familiar with the sluggishness of
a dial-up Internet connection transferring data at 56,000
bytes per second, and when we had our first taste of data
coming through a cable or DSL connection we probable looked
like a young child with saucer-sized eyes on Christmas morning.
But the promise of G3 is to provide WIRELESS data to
us wherever we are at a speed of 2,000,000 bytes per second
(2 megabytes), which is 2 to 10 times faster than a hardwired
cable or DSL connection.
The bandwidth capabilities are there for you to be
able to receive wireless streaming video images on your handheld
device AND youíd be able to browse the web, check your email,
and answer a phone call, all at the same time.
Needless to say some companies in this sector are getting
pretty excited about the potential of this new technology.
If you thought technology and Internet stocks reflected
out-of-this-world valuations in the first quarter of 2001,
then watch out for valuations revolving around third generation
wireless companies and the licenses to provide these services.
In March and April of 2001, G3 licenses were auctioned
off in the United Kingdom and produced shocking results.
The winning bids for the five, 20-year licenses totaled
$35 billion, 8 times higher than the UK government expected.
Based on the UK auction, some experts have calculated
that in the United States, similar FCC licenses for G3
broadcast rights could fetch between $140 billion on the low
side, with some estimating the rights could sell for more
than $600 billion!
The frenzy will certainly be interesting to watch,
and well-placed investments could produce an equally over