AT&T & Straight Path: What's It All Mean for US 5G?

Dan Jones
4/12/2017
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AT&T's planned $1.6 billion buyout of Straight Path appears to me to raise some questions about the near future of 5G for the number two wireless provider in the US.

Let's break them down, shall we?

Will 39GHz become AT&T's 5G flavor for the near-future? This seems like a very strong possibility, simply because of the availability of suitable spectrum licenses for the operator. Taken in tandem, the acquisitions of FiberTower Corp. and Straight Path Communications Inc. will give AT&T Inc. (NYSE: T) nationwide licenses for 39GHz, as well as 28GHz and 24GHz licenses in some cities. (See AT&T to Flash $1.6B for Straight Path 5G Spectrum.)

Verizon Communications Inc. (NYSE: VZ), meanwhile, is focused on 28GHz for fixed 5G services -- using its own spec -- in 2018, mobile in 2020. (See Verizon Says Its Fixed 5G Will Arrive in 2018, Mobile in 2020.)


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Will AT&T use 39GHz for fixed 5G tests and services? This also seems very probable. I can't find evidence of mobile 5G trials at 39GHz yet, which isn't to say they won't happen in the future. We do know, however, that AT&T has been testing streaming DirecTV at 39GHz with Nokia Corp. (NYSE: NOK) in a broadband-to-the-home environment. (See AT&T Lab Tests DirecTV Now Over 5G.)

AT&T has so far said publicly that it intends to launch its first mobile 5G services based on the 3rd Generation Partnership Project (3GPP) in 2018. (See AT&T Expects Mobile 5G Services in 'Late 2018'.)

What about the FCC's 5G auctions? In 2016, the Federal Communications Commission (FCC) said it would open up nearly 11GHz of millimeter wave (mmWave) spectrum at 28Ghz, 37Ghz and 39Ghz for licensed 5G services. This should mean plentiful --- and likely inexpensive -- bandwidth for next-gen wireless in the US. (See FCC Comm. Names 4 Initial 5G Bands for US, Eyes More.)

Yet AT&T -- and Verizon -- have recently been paying big bucks for old short-range fixed wireless and microwave backhaul licenses, which can then be repurposed for 5G. (See 5G in US: Will Spectrum Be the Speed Bump? and 5G: Is Fixed Really In?)

It is most likely that the big two mobile operators are doing this because they can. Spending $1 billion to get licenses for early testing and 5G services will probably give AT&T and Verizon some commercial and marketing advantages over smaller rivals, even if the services start limited.

But AT&T and Verizon also get to hedge against any delays in the FCC opening up 5G spectrum. Since we haven't seen any scheduling for 5G auctions yet, it seems like money well spent.

— Dan Jones, Mobile Editor, Light Reading

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DanJones
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DanJones,
User Rank: Blogger
4/14/2017 | 3:17:11 PM
Re: Spectrum Land Grabphenqphen375
We'll see
danielcawrey
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danielcawrey,
User Rank: Light Sabre
4/14/2017 | 12:08:27 PM
Re: Spectrum Land Grabphenqphen375
In the US, AT&T and Verizon are going to be going head to head on 5G services. 

It will be interesting to watch. Smaller players like Sprint are going to be in trouble on this front, which may lead them to lower prices quite a bit. 
DanJones
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DanJones,
User Rank: Blogger
4/13/2017 | 2:08:11 PM
Re: Spectrum Land Grabphenqphen375
Huh?
DanJones
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DanJones,
User Rank: Blogger
4/12/2017 | 3:09:37 PM
Re: Spectrum Land Grab
We know the 3GPP has defined fixed and wireless models for 5G and AT&T has spent $1B++ on 39Ghz. Seemed worth thinking about...
mkanterman
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mkanterman,
User Rank: Light Beer
4/12/2017 | 2:27:22 PM
Re: Spectrum Land Grab
Well let's define what 5G is before we start discussing what spectrum they're going to use, but for densification purposes and fixed wireless applications it looks promising. Many major carriers have been running trials on these frequencies and seeing generally positive results.

But it's too early to say exactly what it will look like in the end...
DanJones
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DanJones,
User Rank: Blogger
4/12/2017 | 2:24:03 PM
Re: Spectrum Land Grab
Still don't know if it will be *enough* spectrum, given the requirements of mmWave, but these are the options available I guess.

 

So you think AT&T will do mobile 5G with 39GHz? Not seeing it, yet anyway....
mkanterman
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mkanterman,
User Rank: Light Beer
4/12/2017 | 2:16:08 PM
Spectrum Land Grab
I think your last point is the most apt, that $1b is not a big chunk of change for them and it gives them the spectrum position to be ready for 5G when it gets here. The land grab has seen VZ and T both go out and get the spectrum they may need (TMUS also has a good chunk of 28 and 39 GHz fwiw) while Sprint has very little. But it seems best for them to get in front of this and make sure they have access to the spectrum and not leave themselves waiting for the FCC to eventually auction off licenses. This makes it so they don't need to be reliant on the FCC's timeline.
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