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Straight Path Communications has reached a comprehensive settlement with the Federal Communications Commission (FCC) concerning its wireless spectrum licenses, the company announced today. Under the terms of the agreement, the FCC has closed its investigation into Straight Path, allowing the company to retain the vast majority of its nationwide 39 GHz spectrum holdings while leaving its 28 GHz spectrum unchanged.
Both the 28 GHz and 39 GHz bands benefited from a significant regulatory shift introduced by the FCC’s Spectrum Frontiers Report & Order in July 2016. That order opened these millimeter-wave bands to mobile wireless use, making them central to the industry’s 5G efforts. The higher-frequency bands are expected to help deliver faster speeds and greater capacity for consumers and businesses across the United States.
Davidi Jonas, CEO of Straight Path Communications, said the company’s spectrum portfolio positions it as a strategic player in the next generation of telecommunications. “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 US,” Jonas said.
Jonas added that, following the settlement, Straight Path holds an average of 620 MHz of spectrum in the top 30 U.S. markets and maintains nationwide coverage with its 39 GHz holdings. The company has also retained all of its 28 GHz licenses. With the regulatory matter resolved, Straight Path said it can now pursue strategic alternatives aimed at maximizing shareholder value. To assist in that process, the company has engaged Evercore, an independent investment banking advisory firm.
This settlement removes a significant regulatory hurdle for Straight Path and clarifies the company’s spectrum position as the wireless industry continues to deploy and refine 5G technologies. By maintaining key high-frequency spectrum assets, Straight Path is positioned to participate in the growing ecosystem of carriers, equipment makers, and service providers that rely on millimeter-wave bands to increase network capacity and deliver higher data speeds in dense urban areas and other high-demand environments.
With the FCC investigation concluded and the company’s core spectrum holdings intact, Straight Path’s management can focus on strategic options and commercial initiatives that leverage its 28 GHz and 39 GHz licenses. The company’s retained assets, combined with industry momentum around 5G deployment, may create opportunities for partnerships, spectrum monetization, or other transactions designed to enhance long-term shareholder value.
As regulatory clarity improves across the sector and equipment and device ecosystems mature for millimeter-wave frequencies, spectrum owners such as Straight Path will continue to play an important role in enabling next-generation wireless services. The settlement with the FCC represents a key step for the company as it seeks to capitalize on those market dynamics and explore strategic moves supported by financial advisors.