*5G is coming, Trump Admin Selecting Pai, Republican Controlled FCC, Net Neutrality on the chopping block.
*AT&T conducting trial in Austin of 5G Fixed Wireless Service.
*Verizon conducting trials in 10 markets of 5G Fixed Wireless Service.
*It feels as if in the past couple of months the march towards 5G has turned into an all-out sprint to get there.
*FB, AMZN, GOOG, NFLX want seat at table to ensure content delivery.
*ATT / VZ want 5G to pound away at cable, solidify dominant presence to consumer/home
*Cable will want and need to slow down ATT / VZ
*Telco/Tower/Fiber Cos want to enhance service offerings(Connectivity/Backhaul)
*39 ghz 25%/35%/40% controlled by FTWR/STRP/FCC
*FTWR has extensive 24 ghz portfolio and STRP has additional licenses in the 28 ghz band.
*Both FTWR and STRP have a near nationwide footprint in the 39ghz band and have healthy control in the major metro markets.
*Not only can ATT / VZ not risk an auction but with the speed of what is occurring, they can't wait for an auction.
*We are talking about ATT and VZ with Market Caps of $257M and $200M
*All potential interested parties in the space have a combined market cap of $2.4 Trillion
*Near Nationwide Footprint with purchase of FTWR or STRP.
*Paying $500M, $1B, $2B etc…is nothing for most of these companies to absorb to insure their place at the dance.
*If players other than ATT / VZ snap up STRP or FTWR where does that leave ATT / VZ in the 5G race?
*Not only would they be crippled but they would be seeing a rocket launcher of an asset in the hands of a threat pointed back at them.
*How many recollect the failed ATT acquisition attempt of TMUS?
*The merger ended up being shot down by the Obama administration and ATT had to fork over a total $4B in Cash and Spectrum which TMUS ended up using like a billy club to whack the hell out of ATT, S, and VZ in the wireless space.
*Here are all the potential players and their market caps. It seems apparent that buying out a Fibertower or Straightpath for $1B is a fly on an elephants back for most of these:
Content - Facebook - $383
Content - Amazon - $399
Content - Google - $581
Content - Netflix - $60
Cable - Charter - $102
Cable - Comcast - $181
Cable - Altice - $22
Telco/Wireless - Verizon - $200
Telco/Wireless - ATT - $257
Telco/Wireless - TMUS - $52
Telco/Wireless - Sprint - $38
Telco - Century Link - $14
Telco - Windstream - $1
Tower - Crown Castle - $32
Tower - American Tower - $45
Tower - SBA Comm - $13
Fiber - Zayo - $8
Fiber - Level Three - $22
