G3: The Next Innovation

No 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 a frenzy.� So, what is the next innovation or enhancement that will become commonplace?� It�s 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.� Don�t 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 speed.� 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.� WOW!!� The bandwidth capabilities are there for you to be able to receive wireless streaming video images on your handheld device AND you�d 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 inflated reward.