AT&T’s FiberTower deal raises questions about the value of 5G spectrum

[Commentary] A large and growing group of voices, including those from legislators, journalists, FiberTower shareholders and trade associations, argues that AT&T’s purchase of FiberTower’s millimeter wave licenses is a sweetheart deal that undervalues that spectrum—spectrum those in the industry believe is critical to the rollout of 5G.  Most recently, Rep Anna Eshoo (D-CA), in a letter to the Federal Communications Commission, claimed that the agency signed off on AT&T’s FiberTower purchase without holding an open debate about the transaction. The Competitive Carriers Association, a trade group for small wireless operators, agreed, arguing that the transaction gives AT&T “a first-mover advantage in coveted 5G spectrum at the expense of American taxpayers.”

Those complaints about AT&T’s purchase of FiberTower’s licenses extend to Verizon’s purchase of Straight Path’s millimeter wave spectrum licenses. Verizon agreed to pay $3.1 billion for Straight Path in 2017, and earlier this year Verizon and Straight Path paid a $600 million fine because Straight Path didn’t meet the FCC’s spectrum license buildout requirements. The full details of AT&T’s purchase of FiberTower have not yet been made public, and therefore AT&T’s final price tag for FiberTower’s licenses may change. Indeed, in her letter, Rep Eshoo estimated AT&T paid roughly $2 billion for the licenses, based on the price Verizon paid for Straight Path. But AT&T’s purchase of FiberTower may now face complications due to the ongoing debate in the bankruptcy court.