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The U.S. Is in a 5G Race Against China

Chris Lowe

It’s an investing trend you can’t afford to ignore…

Source: Shutterstock

This week, we’re keeping the focus on the 5G revolution.

That’s the next generation of blazing-fast wireless communications networks being built out right now.

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And according to Silicon Valley insider and Legacy Research tech expert Jeff Brown, 5G stocks will be one of the most profitable opportunities over the next decade.

That’s why Jeff is hosting a special event this Thursday…

It’s called The Final Phase of the 5G Boom. And it airs on August 22 at 8 p.m. ET.

Jeff will reveal how a few key 5G stocks could deliver 10 times your money – perhaps even more – as this unstoppable trend gains momentum.

He’ll even be sharing his No. 1 5G watchlist company. So before you read on, make sure to save your spot.

But as we’ll explore in more detail in today’s dispatch, 5G isn’t just an investment trend.

It’s also a matter of national security.

That’s because, as Jeff explained yesterday, the Chinese government could use Chinese-built 5G networks to mount a mass-espionage campaign against the U.S.

It’s because of the threat from groups like APT10…

That’s short for “Advanced Persistent Threat 10.” And it’s the code name given to an elite group of Chinese computer hackers.

APT10 works for the Chinese Ministry of State Security (MSS).

It’s the Chinese intelligence agency responsible for stealing secrets and technology from other countries. (Think the CIA in the U.S.)

And it’s had near unlimited access to data flowing through global wireless networks.

That’s according to Boston-based cybersecurity firm Cybereason…

It conducted an investigation last year. And it concluded that APT10 was behind “mass-scale espionage” of global cellular networks.

The investigation report is a sobering read.

In an operation Cybereason dubbed “Operation Soft Cell,” APT10 seized control of at least 10 cellular networks around the world.

This gave Chinese spooks almost open access to these networks… and the sensitive data that passes through them.

And Operation Soft Cell isn’t the only threat. Last year, 30% of telecommunications providers reported that hackers had stolen sensitive information on their customers.


The Chinese don’t have to hack into your phone to spy on you…

It’s more efficient to hack into telecommunications companies such as Verizon, AT&T, or T-Mobile.

Then, groups like APT10 can use the data these companies collect on their customers to surveil you.

And in 2012, that’s exactly what APT10 started to do.

By secretly gaining access to these network providers, it was able to steal a trove of sensitive information.

This included billing data, call-detail records, credentials… even geolocation data (thanks to the GPS units built into smartphones).

This gave MSS the ability to “track any person across different countries.” That’s what Cybereason CEO Lior Div told The Wall Street Journal.

Any time one of MSS’s targets used a cell phone, MSS could tell where he was and who he was talking to… along with other “private” data sent across these networks.

This is the kind of vulnerability that keeps U.S. intelligence chiefs awake at night…

They worry Americans will become more vulnerable to Chinese companies if China builds the world’s 5G networks.

A Chinese-built 5G network could hand APT10 – and other state-sponsored groups like it – a secret “backdoor” into the rest of the world’s private cellular communication.

Cybereason believes APT10 is even capable of shutting down or disrupting wireless networks as part of a larger cyberwarfare operation.

This issue is so important it’s on President Trump’s radar…

And the radar of his inner circle of advisors.

Last year, President Trump’s National Security Council (NSC) considered a federal takeover of a portion of America’s wireless communications network.

That way, the U.S. could better protect its 5G network… and keep China from infiltrating its wireless communications.

Trump now opposes nationalizing 5G networks…

As Jeff put it in these pages yesterday, the nationalization threat was a way to “light a fire” under the U.S. companies involved in the 5G build-out.

The Trump administration was telling Verizon, AT&T, and T-Mobile, “Start building 5G networks now. Or we’ll do it for you.”

And Trump is right to be concerned. It’s hard to overstate how important it is these networks stay secure.

In the future, the 5G network will be used in robotic surgery, for instance. It will also be used to transmit data to and from self-driving cars… and to and from remote-controlled fleets of semi trucks.

The military also needs secure networks to communicate with drones and other unmanned vehicles.

As Jeff has been writing for years, this is something you don’t want to ignore…

5G will allow us to download movies in seconds on our smartphones.

But what makes 5G a game-changer is the new tech innovations it will give birth to.

By 2035, Jeff says 5G will be responsible for at least $12 trillion of new goods and services. That’s roughly 60% of America’s total GDP in 2017.

For the White House, it’s essential that the 5G networks are built with U.S. and European technology. It’s their only shot at protecting these networks from foreign espionage.

Jeff began by focusing on the first phase of the 5G revolution…

That’s the build-out of the physical infrastructure 5G networks need to exist.

For instance, Jeff put American Tower (NYSE:AMT) on readers’ radars in July 2018.

It builds and maintains wireless network infrastructure such as cell towers.

The firm played a key role in 4G build-out that started in 2011. Today, it’s also involved in putting up the towers used in the 5G build-out.

And it’s been a great stock to own.

You can see AMT crushed the markets since July 2018. It’s up 60% versus a gain of 4% for the S&P 500.

And as you’ll learn in tomorrow’s dispatch, the 5G network build-out is unfolding in three phases. And the next phase promises to be even more profitable than the first.

Stay tuned for more on that tomorrow.

And don’t forget to mark your calendar…

As I (Chris) mentioned up top, this Thursday, August 22 at 8 p.m. ET, Jeff is hosting a free 5G investment summit.

He’ll be detailing how the final, most profitable phase of the 5G boom will unfold.

He’ll also reveal his method for picking the fastest-moving 5G stocks. These are the investments Jeff believes could 10x your money as the 5G megatrend unfolds.

He’ll even give you a “Phase 3” 5G company to add to your watchlist.

I’ll be clearing my schedule to hear Jeff’s big reveal. And I hope you’ll join me. Here’s that link again to save your spot.

Regards,

Chris Lowe
August 20, 2019
Dublin, Ireland

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