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Verizon snatches Straight Path from under AT&T to secure 5G spectrum space

Image: Verizon
Image: Verizon
Verizon has outbid AT&T for the purchase of Straight Path, a small company that holds several hundred licenses in the 39 GHz and 28 GHz spectrums. Verizon will close the $3.1 billion deal over the next 9 months.

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One month after AT&T announced they would be buying Straight Path Communications and its hundreds of wireless spectrum licenses for $1.6 billion, Verizon has announced that they will be purchasing Straight Path for $3.1 billion.

Bank on April 10, AT&T stated that they would be acquiring the spectrum holding company in order to secure 735 licenses in the 39 GHz band and 133 licenses in the 28 GHz band. At the time, AT&T stated this acquisition would help broaden the spectrums available for a roll out of 5G connectivity over the next years. In addition, these licenses cover most of the U.S. and operate in the top 40 markets. The deal was expected to close within a year from the announcement, but it looks like Straight Path has gotten a better deal.

Verizon will purchase Straight Path for about $3.1 billion in a deal that will close within nine months. The acquisition will be an all-stock purchase, securing full control of Straight Path for Verizon.

This is surely a move by the red telecom giant to increase the push of its upcoming 5G network. While this may seem like a large sum of money, keep in mind that this purchase could also hinder AT&T’s 5G rollout as Big Blue must now scramble to find available spectrum for the faster standard. I wouldn’t be surprised if AT&T offers a higher counter-bid to resecure these spectrum licenses in the coming weeks.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2017 05 > Verizon snatches Straight Path from under AT&T to secure 5G spectrum space
Sam Medley, 2017-05-11 (Update: 2017-05-11)
Sam Medley
Sam Medley - Review Editor - @samuel_medley
I've been a "tech-head" my entire life. After graduating college with a degree in Mathematics, I worked in finance and banking a few years before taking a job as a Systems Analyst for my local school district. I started working with Notebookcheck in October of 2016 and have enjoyed writing news articles and notebook reviews. My areas of interest include the business side of technology, retro gaming, Linux, and innovative gadgets. When I'm not hunched over an electronic device or writing code for a new database, I'm either outside with my family, playing a decade-old video game, or sitting behind a drum set.