AT&T Inc.'s bid for Straight Path Communications might have got a rival, as recent Bloomberg reports suggest. On Monday, 10 April 2017, AT&T had said that it would buy Straight Path Communications, a holder of licences to wireless spectrum, for $1.25 billion in an all-stock deal as it aims to accumulate the airwaves it needs for a next generation network (Source: Reuters). While it's rumoured that the bidding rival might be Verizon, Verizon declined to comment on what it called rumors and speculation.
The deal was clearly indicative of how wireless carriers are willing to invest substantial amounts of money to have access to resources that have huge potential for the 5G era. It's predicted that millimeter wave spectrum will play a large role in 5G. Straight Path is one of the largest holders of 28 GHz and 39 GHz millimeter wave spectrum used in mobile communications.
Earlier during the year, AT&T had talked about acquiring FiberTower and its millimeter wave spectrum rights, while Verizon claimed to have closed a deal with XO Communications' fibre-optic network business for about $1.8 billion.