Moody's: AT&T's Straight Path purchase a strategic positive

|About: Straight Path Communicatio... (STRP)|By:, SA News Editor

A spectrum-boosting acquisition of Straight Path Communications (STRP -0.5%) is positive for AT&T (T -0.2%), Moody's says.

The move gives AT&T access to key infrastructure as part of its pursuit of 5G for a relatively small price, which keeps it on pace with Verizon, Moody's says -- the move gives it a spectrum position on par with its rival after Verizon's acquisition of XO Communications.

In addition, "despite its large pending acquisition of Time Warner, AT&T continues to assemble assets that support its core wireless business," Moody's says, pointing also to January's acquisition of Fiber Tower.

"We view these deals as strategic positives, but not material to the near term (0 to 3 years) financial performance," Moody's continues. "However, these small strategic asset purchases are essential to AT&T remaining competitive and perpetuating its market share."

Previously: AT&T buying Straight Path Communications for a whopping $1.6B (Apr. 10 2017)