AT&T will acquire 735 mmWave licenses in the 39 GHz band and 133 licenses in the 28 GHz band. These licenses cover the entire country.
AT&T said the deal complements its January acquisition of FiberTower and bolsters the carrier’s mmWave holdings (see analysis under Tower Ticker). The International Telecommunications Union has said theoretical peak speeds for standards-based 5G in the mmWave band can eventually reach uplink speeds of up to 10 Gbps and download speeds of up to 20 Gbps.
The companies peg the value of the deal at $1.6 billion, including liabilities and amounts to be remitted to the FCC per the terms of Straight Path’s January, 2017 consent decree. Straight Path shareholders will receive $1.25 billion, or $95.63 per share, which will be paid using AT&T stock. The transaction is subject to FCC review, and the two companies expect the deal to close within 12 months.
April 11, 2017
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