Straight Path Settles With the FCC, Now Set to Move Forward with Review of Strategic Alternatives to Maximize Shareholder Value
January 12 2017 - 6:30AM
Business Wire
Straight Path Remains the Largest Holder of 39
GHz Spectrum and Significant Holder of 28 GHz, Continuing Its
Leadership in Developing 5G Wireless Technology
Straight Path Communications Inc. (NYSE MKT:STRP), one of the
largest holders of flexible mobile and fixed-use wireless
millimeter wave spectrum, today announced a comprehensive
settlement with the Federal Communications Commission (FCC) related
to the company’s wireless spectrum licenses. As part of the
agreement, the FCC has terminated its investigation of Straight
Path, and Straight Path can now move forward with the vast majority
of its nationwide 39 GHz spectrum fully intact, and its 28 GHz
spectrum unchanged. Both of these spectrum bands, 28 and 39 GHz,
were the recent beneficiaries of a dramatic rule change instituted
in July 2016 by the FCC’s Spectrum Frontiers Report & Order.
The change allows these bands to be used for mobile wireless and is
central to the industry-wide push to 5G, in order to provide higher
speeds to hundreds of millions of consumers and businesses
throughout the U.S.
Straight Path Communications CEO Davidi Jonas commented on
the FCC settlement:
“We are pleased that we were able to achieve a comprehensive
settlement with the FCC, which allows us to move forward as the
largest holder of 39 GHz spectrum, with about 95 percent of the
total licenses commercially available at this time, as well as a
significant holder of 28 GHz in major markets, including New York
and San Francisco. These licenses allow us to continue as a leader
in the next frontier of telecommunications.
“Straight Path Communications’ spectrum is part of the bedrock
for 5G and will play an important role in the development of this
next-generation ecosystem, underscored by activities already
underway by leading wireless carriers and equipment manufacturers
in the U.S.
“Post-settlement, Straight Path Communications holds an average
of 620 MHz in the top 30 U.S. markets and covers the entire nation
with 39 GHz spectrum. Additionally, the Company has retained all of
its 28 GHz spectrum licenses.
“With this settlement, we have cleared the way for a review of
strategic alternatives to maximize shareholder value. To represent
us in our endeavors, we have retained Evercore, a premier
independent investment banking advisory firm.
“We look forward to continuing our role in the important
development and deployment of 5G technology. This includes
accelerating the innovative hardware and software we are developing
for Fixed 5G® in our Gigabit Mobility Lab in Plano, Texas, under
the guidance of our CTO, Jerry Pi, a renowned pioneer in millimeter
wave 5G.”
At 8AM ET TODAY (Thursday, January 12)
Straight Path Communications will host a media call to discuss this
announcement. For dial-in information please email:
pmb@skdknick.com
Settlement terms
Straight Path will move forward with a full national network of
735 licenses, including deep coverage in major markets, totaling
more than 175 billion MHz-PoPs in 39 GHz spectrum, while agreeing
to return 93 of its 828 39 GHz spectrum licenses to the FCC.
Straight Path will also move forward with all of its 28 GHz
spectrum, totaling approximately 39 billion MHz-PoPs, covering many
key markets. Straight Path agreed to pay $15 million in
installments over a nine-month period. The company also agreed to
proceed with its plan to market its spectrum assets to maximize
shareholder value. Straight Path agreed to pay the FCC 20 percent
of the value received from a sale of its spectrum assets. If
Straight Path does not announce a transaction within 12 months, it
will pay another $85 million to the FCC (or return its spectrum
licenses to the FCC).
About 5G and Frequency Bands 28 GHz and 39 GHz
5G is the next chapter of wireless innovation. As outgoing FCC
Chairman Tom Wheeler stated: “If the United States is going to
continue to be a world leader in wireless, we need to speed the
deployment of 5G, here, on our shores.”
Unlike 4G, 5G technology relies on uncongested spectrum bands
such as 28 GHz and 39 GHz that are free of interference. Compared
to today’s 4G networks, 5G could allow wireless carriers to deliver
data to users at speeds 10 times as fast, and with only 1
millisecond of delay. Straight Path Communications has been a
leader in championing the use of these bands to unlock the
potential of 5G technology. The company is a contributing member of
ATIS 3GPP, the leading standard-setting body for 5G, and worked
closely with the FCC to help adopt “Spectrum Frontiers” rules that
open up new spectrum bands, including 28 GHz and 39 GHz, for
flexible mobile and fixed-use wireless broadband.
About Straight Path Communications Inc.
Straight Path (NYSE MKT: STRP) holds an extensive portfolio of
39 GHz and 28 GHz wireless spectrum licenses. Straight Path is
developing next generation wireless technology through its Straight
Path Ventures subsidiary. Straight Path holds licenses and conducts
other business related to certain patents through its Straight Path
IP Group subsidiary. Additional information is available on
Straight Path's websites.
Corporate: www.straightpath.com
Spectrum: www.straightpath39.com
Safe Harbor
In this press release, all statements that are not purely about
historical facts, including, but not limited to, those in which we
use the words "believe," "anticipate," "expect," "plan," "intend,"
"estimate, "target" and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. While these forward-looking statements
represent our current judgment of what may happen in the future,
actual results may differ materially from the results expressed or
implied by these statements due to numerous important factors,
including, but not limited to, those described in our Annual Report
on Form 10-K for the fiscal year ended July 31, 2016 and our other
periodic filings with the SEC (under the headings "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations"). We are under no obligation, and
expressly disclaim any obligation, to update the forward-looking
statements in this press release, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170112005359/en/
Straight Path Communications Inc.Yonatan Cantor,
804-433-1523yonatan.cantor@straightpath.com
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