The Most Lucrative Technology in America – and How It’s About to Capture a $1 Trillion Market
There’s something better than 5G.
I’ve dubbed it 6G… and it’s triggering the next great technological leap in Wi-Fi communications.
Powerful Big Tech companies, like Tesla, Apple and Amazon, are all rushing to get involved in this game-changing technology…
A new satellite-based communications network that will be faster, cheaper and more widely accessible than any network currently accessible on Earth.
Better than 3G, 4G and 5G.
And cheaper for consumers… because this breakthrough will allow nearly 1 billion people to bypass the big cellular carriers!
Losing Your 5G Signal… and Getting the 6G Connection
Wireless technology is headed to space.
Cellphones will soon be based on a system that uses satellites, not antennas dotted across the landscape, to beam signals to users.
That means, at least according to SpaceX’s chief operating officer, Gwynne Shotwell, internet access will cost “less than what you are paying now for about five to 10 times the speed you are getting.”
That’s a big deal.
It will be something that could entirely scrap the cellphone network we rely on today… and that includes 5G.
And Big Tech is salivating over the possibilities…
Elon Musk’s SpaceX has announced that it’s planning to launch thousands of satellites as part of its ambitious Starlink program.
Jeff Bezos’ Amazon just announced its own plans (Project Kuiper) to launch 3,236 satellites as it aims to provide internet service around the globe – presumably to all its potential shoppers.
At the same time, Apple is working to get its signal into space. According to people familiar with the work, Apple has a team working on satellite technology.
Facebook is also reportedly looking into internet satellite communications of its own…
By using satellites to beam internet services directly to their customers, these Big Tech companies could bypass wireless networks and eliminate the need for the big cellular carriers.
That means what’s happening right now not only is monumental but also shows that a huge transformation is underway.
A brand-new market is launching, one that investment bank Morgan Stanley expects to rocket to $1 trillion over the next two decades.
This transformation will be immensely profitable for one tiny leading-edge satellite company.
The 6G Superstar
To accomplish their goal of satellite communications, Musk, Bezos and company will ultimately need thousands of their own satellites in orbit.
But rather than try to build and deploy all these satellites themselves… why not find an experienced partner or simply buy what they need?
With multitrillion-dollar market caps and billions in cash, Amazon, Apple and their ilk will likely take that approach.
If they do… they’ll find a perfect candidate in Telesat, a leading satellite communications provider.
Telesat is developing a global network of state-of-the-art low-Earth orbit (LEO) satellites.
Instead of the 22,000-mile-high orbit of traditional geostationary (GEO) satellites…
LEO satellites fly just 650 miles above Earth.
That means they can send and receive signals up to 20 times faster than the earlier generations.
That’s why LEO satellites are essential for high-performance 6G networks.
And Telesat’s satellites cover a huge chunk of the world…
In addition to its own LEO satellites, the company manages satellite networks for others. Telesat’s global reach includes North America, South America, Central America, Europe, Asia and the Middle East.
So cheap and fast communication service (that rivals or exceeds 5G) in all corners of the globe will soon be available for any interested parties.
The idea is pretty simple. Telesat sells chunks of its network bandwidth to whoever needs it.
And just like that, people can enjoy high-speed internet access wherever there’s satellite coverage. No towers or fiber-optic cables needed!
Unlike cell signals that can be spotty and offer limited coverage, satellite signals can blanket the planet.
And satellite signals actually travel 30% faster through space than through fiber-optic cables – the backbone of all current communications systems, including 5G.
If Apple, Amazon, Facebook and SpaceX want to instantly adopt this new technology and bring it to billions of existing customers… they’ll need a partner like Telesat.
Telesat is a private company… but there is a “backdoor” way for you to profit.
A very unusual corporate restructuring is about to take place – one that I’m certain will be very profitable for early investors.
A Winning Combination
Currently, Telesat is essentially controlled by Loral Space & Communications (Nasdaq: LORL), which owns 63% of the company.
But in a unique move to unlock the potential of Telesat and bring attention to its leading role in the budding $1 trillion satellite communications industry… Telesat, the private subsidiary, is about to flip positions with Loral, the parent company.
In late November 2020, Telesat entered into an agreement with Loral through which Telesat will become a publicly listed company on the Nasdaq.
The new company will be called Telesat Corporation.
But this is not just a standard spinoff of Telesat into a separate public company…
Loral Space & Communications and Telesat Canada will become subsidiaries of Telesat Corporation!
Telesat Corporation will be a Canadian incorporated company with headquarters in Ottawa, Ontario. (Telesat is also considering a listing on a Canadian stock exchange.)
The transaction is expected to close in the second or third quarter of 2021.
This move is the perfect solution to unleash the value of Telesat – with all the potential of its LEO satellite network – while maintaining all the financial strength offered by Loral and Telesat Canada.
By buying shares of Loral Space & Communications now, you will automatically become a shareholder of the new publicly listed Telesat Corporation.
You’re essentially getting two exciting companies for the price of one!
This is the perfect way to profit from the 6G future ahead.
Investors will be swarming all over this company when the public catches on to the massive transition taking place in wireless communication.
A Rocket Stock, Ready to Launch
Telesat offers aspiring 6G players critical features they can’t get anywhere else:
- It has locked up priority rights to the Ka-band with the International Telecommunication Union. This is the prime location in the new space race.
- It has an ingenious patent-pending design for the cluster of LEO satellites it’s launching. The combined power of these clusters can be sent wherever traffic is highest at any given time.
- It has overcome one of satellite communication’s biggest issues – what the industry calls “rain fade.” It’s the loss of a satellite signal during a thunderstorm or heavy snowstorm. Loral has added an advanced “rain fade eliminator” to its satellite’s power systems.
- Telesat’s LEO satellite network is about 20 times more responsive than today’s geosynchronous satellites.
- Because of Telesat’s multiple interconnected satellites, the network is highly resilient and very secure. And there are no gaps in coverage. You’ll always be able to stay connected.
- Telesat’s LEO technology is more cost-effective for universal reach than fiber and microwave alternatives.
Telesat’s first LEO satellite was launched in January 2018, and the company has been perfecting the technology for the past three years. It’s now ready for commercial deployment.
Telesat’s LEO satellite network will create a huge new revenue – and profit – stream for Telesat Corporation.
Telesat’s LEO network is scheduled to begin operating in 2022. The network provides the ideal setup for any company that wants a direct link to communication satellites that can provide global connectivity.
That’s huge…
It means Telesat will have first-mover advantage to be a leading player in the 6G sector.
Big Tech and big government are already jumping at the 6G opportunity with Telesat:
- Telesat recently inked a strategic partnership with Jeff Bezos’ satellite startup, Blue Origin.
- Telesat has partnered with Loon, a subsidiary of Google’s parent company, Alphabet.
- The government of Canada has signed a $600 million contract to access Telesat’s LEO capacity.
That leaves little doubt that 6G technology is on its way to you and me.
An announcement of an ownership stake or an expanded business alliance involving Telesat and any of these tech titans will send the stock price of the new Telesat Corporation to the moon!
This 6G Superstar Is Already a Leading Global Satellite Operator
Most of the time when you are betting on a small company, you have to accept that current finances are in what I call “startup” shape.
But that’s NOT the case here.
In 2020, Telesat raked in $613 million in revenue and $93 million in net income.
While the 6G industry develops, Telesat is generating a steady stream of satellite-generated revenue.
Telesat is one of the world’s leading fixed satellite services operators and the largest in Canada.
Telesat provides services to both of the major direct-to-home providers in Canada – Bell TV and Shaw Direct. Together, they have approximately 4.4 million subscribers.
Both Bell TV and Shaw Direct exclusively use Telesat’s satellites.
Telesat also provides satellite service to Dish Network in the United States. It has approximately 8.8 million subscribers.
The company has a leading position as a provider of satellite services in the North American video distribution market.
Loral and Telesat also have a variety of other U.S. and international contracts with more than 400 customers worldwide.
And those customers represent some of the strongest and most financially stable companies in their industries. They include Ball Aerospace, General Dynamics Mission Systems, OmniAccess, the Canadian government, Telefónica Group, Lockheed Martin, the U.S. Space Development Agency, the U.S. Department of Defense and many others.
Many of these clients have committed to long-term contracts.
Telesat has a backlog for future services of nearly $2.1 billion!
The beauty of this new company – Telesat Corporation – is that a large chunk of annual revenue is predictable. It comes from an existing backlog of long-term customer contracts and high contract renewal rates…
Looking ahead, Telesat Corporation is about to be a leader in a brand-new phase of the satellite communications business… with $1 trillion in future business potential.
Don’t Let This Stock Blast Off Without You
As icing on the cake, activist investor Mark Rachesky is chairman of the board.
Rachesky is the founder and chief investment officer of MHR Fund Management, a hedge fund specializing in investing in turnarounds, buyouts and undervalued middle market companies.
MHR Fund owns 39.9% of Loral’s shares.
I’m sure it’s Rachesky’s activist moves at Loral that are responsible for this unique change in corporate structure about to take place.
Activist investors have a good track record of increasing the value and share price of the companies they focus on. That makes all shareholders wealthier in the process.
We don’t know yet how many shares of the new Telesat Corporation will be granted to Loral shareholders. However, Rachesky, as the largest shareholder, will be our advocate to make sure we get a favorable deal.
A Revenue and Profit Surge About to Be Unleashed
I’m absolutely convinced we will look back in five years and think we were silly for filling our cities with ugly cellphone antennas and clogging our airwaves with lousy signals that may or may not be causing cancer.
Instead, we’ll be communicating across the world with satellites floating miles over our heads.
My research shows that Telesat’s revenues are on track to jump into the tens of billions of dollars in the next few years as this transition unfolds.
Yet the stock is trading for about $20… 35% less than it was one year ago.
So I’m urging you to invest now in Loral and get in ahead of everybody else – before Telesat becomes a public company – while the profit potential’s just warming up.
Action to Take: Buy Loral Space & Communications (Nasdaq: LORL) at market. Place our customary 25% trailing stop on the position.
We will keep you informed regarding when the new Telesat Corporation will be going public.
Note: Telesat began trading as a public company on November 19, 2021. You can find it on the Nasdaq under the ticker symbol TSAT.
