The Competitive Carriers Association objects to the proposed transfer of millimeter wave spectrum from Straight Path Communications to Verizon as part of a proposed all-stock transaction the parties value at just over $3 billion. The telcos seek permission to transfer the control of Local Multipoint Distribution Service, 39 GHz, 3650-3700 MHz, and common carrier fixed point to point microwave licenses from Straight Path to Verizon. The FCC’s preliminary review indicates once the deal closes, Verizon would have 100 MHz to 1650 MHz of spectrum in total, in the 28 GHz and 39 GHz millimeter wave bands across the U.S.
“If approved, the transaction would consolidate enormous amounts of mmW spectrum into the hands of Verizon and would exceed the FCC’s spectrum screen in key local markets,” said CCA in a Petition to Deny, filed with the agency. CCA wants the Commission to block the application and instead make Straight Path’s licenses available to all carriers through competitive bidding. Verizon has told the FCC its post-transaction look at “marketplace developments and competitive circumstances reveals no risk to competition.”
CCA President/CEO Steven Berry said industry consolidation is a big issue. The “mmW spectrum will be essential to the rollout of next-generation wireless networks, and allowing Verizon, one of the nation’s largest carriers, to acquire such a large amount of this next generation spectrum could thwart competitive carriers’ efforts to deploy next-generation technologies in some of the most rural and remote areas of the United States. With the proposed Verizon/Straight Path, the Verizon/Nextlink, and the AT&T/FiberTower transactions all currently on the table, there is a real risk of harming the public interest and preventing competitors from the opportunity to acquire valuable spectrum resources.”
Verizon plans to use mmW spectrum to launch 5G services and anticipates launching pre-commercial 5G fixed wireless trials in 2017. Petitions to Deny were due to the FCC by August 11, Inside Towers reported; those who oppose those petitions must file by August 18, and reference ULS File No. 0007783428.
Published August 15, 2017
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