Straight Path Communications (NYSEMKT:STRP) is up 33.7% on volume that's already more than four times its daily average after news of its settlement with the FCC over spectrum licensing requirements.
The company will pay more than $100M to settle the probe and will relinquish all of its 5G licenses, the agency says. It had charged Straight Path with squatting on the licenses with no meaningful effort to put them to good use.
The company now says it's moving forward with the "vast majority" of its 39 GHz spectrum currently intact and its 28 GHz spectrum unchanged.
The company's surrendering 196 of the 1,000 39 GHz licenses. Straight Path will pay $15M up front and will be on the hook for the other $85M if it holds the balance of the licenses after 12 months. It can surrender the licenses or sell them, giving the FCC 20% of the proceeds.
Straight Path Communications (NYSEMKT:STRP) is off 1.5% after fiscal Q1 earnings after a wider loss though revenue beat expectations.
Revenue fell to $0.2M and loss from operations widened to $4.3M. Net loss widened to $4.1M from a year-ago loss of $0.6M (and last quarter's loss of $3.8M).
The company's Gigabit Mobility Lab is refining its prototype 39 GHz 5G transceiver, it says, with an outdoor demo expected next year. And FCC approval of CBNL's 39 GHz VectaStar 600 PMP radios for commercial use is a "significant event that enables us to take next steps with CBNL, including increased marketing and testing, as U.S. wireless operators can now begin to deploy the live radios utilizing our spectrum."
Straight Path Communications (NYSEMKT:STRP), up 7.7% premarket, will see its 39 GHz spectrum used in an expansion by Windstream Holdings (NASDAQ:WIN) of last-mile fixed wireless options in 40 markets.
Windstream will use point-to-mulitpoint 39 GHz radios from Cambridge Broadband Networks along with Straight Path's market-leading holdings of millimeter wave spectrum in seven markets where it already offers fixed wireless (Chicago, New York City, Boston, Cleveland, Philadelphia, Milwaukee and Little Rock) along with 33 new markets, including Atlanta, Dallas, Miami, Phoenix and Seattle, among others.
The move follows not long after success with Windstream's VectaStar network in New York City, using Straight Path's 28 GHz spectrum.
The unit, which consists of 144 antenna elements and 8 transceiver chains, supports the entire 39 GHz band, and the demo showed wireless transmission of a 500 MHz wideband signal with 64-QAM modulation and beamforming, the company said.
Straight Path cautioned that the product's in a developmental stage and so might not result in a commercially viable product.
“This test successfully demonstrated the feasibility of our transceiver design," says Chief Technology Officer Jerry Pi. "We will now focus on improving key performance metrics and optimizing the mechanical design to move toward a commercially viable product that will meet industry expectations as to performance, cost, and reliability.”