AT&T Buys Straight Path in $1.6 Billion Deal for 5G Arsenal – Bloomberg (Apr 10, 2017)
Though 5G standards haven’t been finalized yet, it’s already clear that some major networks will be running in much higher frequency bands than previous generations of technology, and specifically in what’s known as the millimeter-wave bands between 30 and 300GHz, mostly in the lower part of that range. As such, spectrum in those bands has suddenly become much more valuable, and companies are starting to snap it up. AT&T already bought some earlier this year and now is spending $1.6 billion to buy up a holding company which owns a decent chunk of it. Straight Path hadn’t actually been putting it to use as required by its purchase contract, and so has been forced by the FCC to hand it over to someone else, precipitating a sale process. Given how little spectrum is available generally, this is a decent price for an increasingly valuable asset, and it will likely increase interest in other holders of higher-frequency spectrum, including DISH. We’re still very early in the 5G rollout phase, but we’re going to see lots more purchases like this (including some of actual businesses rather than mere holding companies) over the next couple of years as the big existing players and some new entrants line up 5G spectrum.
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