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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.
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