5G Infrastructure Series
Part 2: Hype versus Opportunity and Timing
Bryan Spratt
Portfolio Manager
Bryan J. Spratt, CFA, graduated summa cum laude from Spring Arbor College with a BA degree in Economics/Computer Science.
He previously worked as an analyst and portfolio manager in various investment subsidiaries at Comerica Bank, from 1990 to 2001, including Munder Capital, from 1994 to 2001. At Munder he was a member of the Energy and Power Team that developed and managed the Munder Power Plus Fund, among other portfolio management responsibilities. From 2001 through 2004, Bryan was responsible for the utilities and telecom sectors for the Value Team at Banc One Investment Advisors and the One Group Funds, which ranked among the largest asset managers in the US prior to its acquisition by JP Morgan Chase.
About Miller/Howard Infrastructure
Miller/Howard Infrastructure provides both rising income and growth, and seeks to participate in the stability and dynamic growth of essential services and infrastructure worldwide. The stability arises from the fact that utilities and infrastructure are in constant demand and continuously generating revenues. The growth is due to expanding populations and demographic shifts that drive more usage. In the developing world, growth arises as economies push toward a developed-world standard of living.
5G Infrastructure Series
Part 2: Hype versus Opportunity and Timing

Commentary

5G will significantly improve speeds, lower latency and provide the ability to connect many more devices all at once. So how fast? Industry forecasts suggests 10 to100 times faster than 4G and some estimates are even higher—up to 10x decrease in latency—think responsiveness, 3x spectrum efficiency, and 10x connection density and will be able to better optimize network energy consumption with estimates of 100x greater network efficiency. The goal at this point is aiming for 20 gigabits speed with less than 1MS latency, with some tests already at 30 gigabits download speeds. What 5G means is potentially the end of the “wheel of death,” as we now wait for a movie download.

But this also means 5G is expected to be 100x more complex, but should allow different networks the ability to communicate more seamlessly. This is why Qualcomm refers to 5G as the Unifying Connectivity Fabric. The chief technology officer at Nokia [Marcus Weldon] said, “5G will give birth to the next phase of human possibilities, bringing about the automation of everything,”

5G is climbing the hype cycle and we are not sure we agree with one firm [Qualcomm] suggesting it could be as “transformative as electricity.” But as 5G becomes the new standard, it has the potential to fundamentally transform the digital revolution.

5G is getting a lot closer to reality than many think. We like a recent quote by the head of wireless networks at Verizon who said, "We don't wait for the future, we build it.” And this is another great example of moving the industry forward."

In the upcoming episodes, we will discuss ‘The Progression to 5G’ and ‘How Miller/Howard Invests in 5G Today.’ We hope you can join us.

As of March 5, 2018, Miller/Howard held NOK, QCOM, VZ in our portfolios.

© 2018 Miller/Howard Investments.

Investment products: are not FDIC insured - May lose value - Are not bank guaranteed

Opinions and estimates offered constitute Miller/Howard Investments’ judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. All investments carry a certain degree of risk, including possible loss of principal. It is important to note that there are risks inherent in any investment and there can be no assurance that any asset class will provide positive performance over any period of time. The material may also contain forward-looking statements that involve risk and uncertainty, and there is no guarantee they will come to pass.

The information above is from sources deemed to be reliable and is provided strictly for the convenience of our investors and their advisors. These materials are solely informational. Legal, accounting and tax restrictions, transaction costs and changes to any assumptions may significantly affect the economics of any transaction. The information and analyses contained herein are not intended as tax, legal or investment advice and may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal, investment or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability. Any investment returns, past, hypothetical or otherwise, are not indicative of future performance. Do not use this report as the sole basis for investment decisions. Do not select an allocation, investment discipline or investment manager based on performance alone. Consider, in addition to performance results, other relevant information about each investment manager, as well as matters such as your investment objectives, risk tolerance and investment time horizon.

Past performance does not guarantee future results.

DISCLOSURE

Investment products: are not FDIC insured - May lose value - Are not bank guaranteed

Opinions and estimates offered constitute Miller/Howard Investments’ judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. All investments carry a certain degree of risk, including possible loss of principal. It is important to note that there are risks inherent in any investment and there can be no assurance that any asset class will provide positive performance over any period of time. The material may also contain forward-looking statements that involve risk and uncertainty, and there is no guarantee they will come to pass.

The information above is from sources deemed to be reliable and is provided strictly for the convenience of our investors and their advisors. These materials are solely informational. Legal, accounting and tax restrictions, transaction costs and changes to any assumptions may significantly affect the economics of any transaction. The information and analyses contained herein are not intended as tax, legal or investment advice and may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal, investment or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability. Any investment returns, past, hypothetical or otherwise, are not indicative of future performance. Do not use this report as the sole basis for investment decisions. Do not select an allocation, investment discipline or investment manager based on performance alone. Consider, in addition to performance results, other relevant information about each investment manager, as well as matters such as your investment objectives, risk tolerance and investment time horizon.

Past performance does not guarantee future results.

© 2018 Miller/Howard Investments.