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Friday, 04/14/2017 3:08:13 AM

Friday, April 14, 2017 3:08:13 AM

Post# of 4715
What will the FCC do?

*FCC imposes 20% fine on StraightPath in response for defrauding the FCC did zero construction and actually filed the paperwork with the FCC claiming they had equipment and service at all locations when they had next to nothing.
*Note the CCA is trying to contend that the cases are not similar and that StraightPath did complete substantial service showings. Yes they filled out the paperwork but what was actuality?
*StraightPath spent next to nothing on any type of Millimeter Wave Services whatsoever.
*What did their Balance Sheet and Cash Flow statements look like with regards to Cap Ex? Couldn’t produce invoices, purchase orders etc…where was the network monitoring of all these links to ensure services?

*Fibertower actually worked with the FCC and took all the right steps to get their licenses renewed and actually had numerous customers including all the big 4 carriers, Clearwire who were supported by Fibertower’s $300M+ backhaul network.
*It was apparent Fibertower thought they had all their ducks in a row leading up to the renewal and thus did not build the “links to nowhere” costing them $12M+ is useless cap ex.
*On top of providing backhaul services in 13 major metro markets Fibertower also invested in R&D and delivered products like spectrum in a box which enabled end users to set up their own wireless links backed by Fibertower’s spectrum.

*The carriers want the 24 / 28 / 39 ghz spectrum now so they can plan their buildouts and prevent others from getting into their backyards.(Comcast, Charter, Altice, Google etc..)
*Cannot plan a buildout if you don’t have a roadmap of your spectrum holdings.
*Thus the slap on the wrists for StraightPath compared to their actions or inactions with regards to the FCC’s rules.

*With Fibertower what do they do?
*3 Bidders for StraightPath’s spectrum with a potential over the top bid on AT&T’s deal from Verizon. Is the 3rd player T-Mobile? Comcast? Google?
*If they don’t return the licenses back to Fibertower then Fibertower has the grounds based on the StraightPath decision to get this tied up in the courts until at least 2020 and the FCC and Carriers cannot afford that.
*Yet you give the spectrum back and then along comes a very viable case to reopen the Bankruptcy Chapter 11 proceedings.

*In the end does the FCC say in order to approve this transaction we have to make everyone happy so the goal of getting the spectrum in the right hands is accomplished with no strings attached.
*The FCC with Trump/Pai wants 5G to take off and they need to put ATT and Verizon first on the glidepath to success. Always keep in mind Sprint/Tmobile and their foreign ties.
*That means formers shareholders are content, Fibertower gets a similar slap on the wrists to that of StraightPath, and the debt holders walk away with something?

*There is a lot of moving parts to this but after the AT&T StraightPath move and Verizon follow up there is little doubt that Fibertower’s spectrum could be sitting in the $1.4B to $2B area.

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