Straight Path settles with the FCC and reviews strategic alternatives
Straight Path announced a comprehensive settlement with the Federal Communications Commission related to the company's wireless spectrum licenses.As part of the agreement, the FCC has terminated its investigation of Straight Path, and Straight Path can now move forward with the vast majority of its nationwide 39 GHz spectrum fully intact, and its 28 GHz spectrum unchanged. Both of these spectrum bands have recently been allowed to be used for mobile wireless as part of the industry-wide push to 5G. Straight Path agreed to pay $15M in installments over a nine-month period. The company also agreed to proceed with its plan to market its spectrum assets. Straight Path agreed to pay the FCC 20% of the value received from a sale of its spectrum assets. If Straight Path does not announce a transaction within 12 months, it will pay another $85M to the FCC or return its spectrum licenses to the FCC.