Spectrum Global Solutions Inc. (SGSI) Set to Capitalize on Rising TELCO CAPEX

October 14, 2019 10:17:19
  • Major U.S. telecommunications carriers are increasing spending on 5G infrastructure
  • Spectrum Global recently announced a key contract win with a Tier-1 infrastructure aggregator
  • SGSI boasts a global track record of more than 150,000 projects in its 34-year history

With the sign-off of an agreement to provide 5G support services to a U.S.-based, Tier-1 telecommunications infrastructure aggregator, Spectrum Global Solutions Inc. (OTCQB: SGSI) continues its mission to build and service end-to-end communications networks at home and abroad. 5G rollout is proceeding at a rapid pace, and expenditure on infrastructural projects is climbing. Spectrum is well positioned to capitalize on this rising TELCO CAPEX.

Cellular phone technology has come a long way since the 1G (first-generation) analog systems of the 1980s that transmitted voice communications and little else. The shift to digital in the early 1990s, with 2G systems, allowed texting, and, just before the turn of the millennium, 3G made the web accessible from mobile devices. Circa 2008, 4G LTE (long-term evolution) came along, which drove everything 10 times faster. 5G is faster still.

Today’s fastest 4G modems max out at 2 Gb/sec, while 5G’s maximum speed is 20 Gb/sec. Moreover, 5G’s high speed is coupled with near zero latency: about one millisecond (0.001 sec). Latency is the time lapse between sending and receiving information when devices communicate. By comparison, human reaction time is 150-300 milliseconds.

Among the many possibilities, 5G’s real-time potential appears to be well suited to self-driving cars. Imagine a future where hundreds of real-time connected cars travel down a highway, each knowing exactly where every other car is without any human input. No accidents, in other words. This halcyon scenario isn’t possible quite yet because the necessary infrastructure isn’t in place. But change is in the air.

5G uses high-frequency millimeter waves as opposed to the lower-frequency waves employed by present cellular technologies. But unlike their larger-wave cousins, millimeter waves can’t travel farther than a few hundred meters and can’t travel through walls or bad weather. As a result, major carriers are building an entirely new infrastructure of transmitters, located every few hundred meters, to facilitate 5G. Driven by increased spending from Sprint and T-Mobile, CAPEX by the four largest U.S. carriers – AT&T, Sprint, T-Mobile and Verizon – rose to $55.71 billion in 2018, up from $53.72 billion in 2017, according to S&P Global Market Intelligence (http://nnw.fm/S5rgj). This will undoubtedly increase as AT&T and Verizon expand their 5G programs, with engineering service companies such as Spectrum benefiting from the largesse.

In addition, the company recently announced a key two-year, nationwide, engineering-services contract with a Tier-1 infrastructure aggregator in support of 5G network deployment efforts. The contract is for outside-plant engineering services surrounding an optical fiber-fed, 200-plus site, metropolitan-area 5G infrastructure deployment (http://nnw.fm/6aMQ7).

“We are pleased to announce another Tier-1 contract win supporting the rollout of a 5G network in a major metropolitan area in the United States,” SGSI President Keith Hayter stated in a news release. “We continue to see ramping demand for our services to power the 5G connectivity revolution, the infrastructure spending for which we expect to continue unabated for the next several years.”

The engineering services company has a global track record of successfully executing more than 150,000 projects since commencing operations 34 years ago. The future looks bright for 5G because, unlike previous technological generations, the technology is about more than mobile phones. Its real-time latency capabilities may be just what the IoT needs to get going.

For more information, visit the company’s website at www.SpectrumGlobalSolutions.com

NOTE TO INVESTORS: The latest news and updates relating to SGSI are available in the company’s newsroom at http://nnw.fm/SGSI

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