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Resonant and WiFi, plus Google & Clearway news +3
I see Resonant as a primary beneficiary of this development because it moves up the timeline for new filter use a little, while we wait for the broader swath of spectrum to make its way through court objections from wireless carriers and WiFi-6E standards certifications, which aren't expected until early next year. Over the longer term, Dish inching forward on its 5G from scratch plans can't hurt either. As a reminder, and the new frequencies are right in the the wheelhouse for XBAR, but while Resonant has to do mobile through Murata for the next couple of years, non-mobile applications are a completely open opportunity for the company. Lumen remains a secondary beneficiary in my eyes, as better WiFi drives demand for fiber to back it up.
In the meantime, Resonant's sales in China, which just issued its first-ever negative interest debt, will remain important. The state of national financing is in contrast with recent American developments, but that's not stopping Google from partnering with 11 banks to offer new Plex accounts in 2021. I might not be the only person that doesn't want Google combining my payment and search histories, but I predict this will be a hit and a good move for the company, which likely has eye on cutting out the banks altogether toward the middle of the decade once the Fed implements European-style 24x7 instant payments. We'll see how that proceeds with antitrust pressure under the new administration, though. Google is finally adjusting other self-serving practices as pressure begins to bear down. Look for maps to be the next casualty of competitive pressures as well. Again, I'm hardly mainstream, but I plan to switch to a privacy-centric phone next year, which will probably rely on OSM. At least Fitbit seems to be favoring Google Assistant with the latest version of its operating system, though it is also improving Alexa integration.
In other news, Clearway is spending $202M to more than double its stake in the Agua Caliente solar farm, resulting in a controlling interest. Beginning in 1Q21 this should provide an extra $20M/year (almost 10 cents/share) in CAFD before financing for the remaining 19 years on the contract with PG&E. Note that this was NOT on the pipeline detailed with the last report.
Everyone enjoy the next week's shortened trading due to Thanksgiving and stay safe, but look for more telecom news after the holiday as the C-band auction gets going!