News: Verizon Just Stole AT&T's 5G Deal Out from Under Them

Verizon Just Stole AT&T's 5G Deal Out from Under Them

UPDATE 5/12: According to Bloomberg, it looks like the merger is on. Anonymous sources claim discussions have already begun about consolidation. Looks like there might be a new 5G powerhouse after all.

In case you haven't been following the news, the 5G war is so on. AT&T was first, releasing "5G Evolution," which turned out to be fake 5G. For shame! T-Mobile then announced their intentions to release a real 5G network in the coming years, with Sprint following suit only a week later. Then, just when AT&T could at least acquire 5G network technology, Verizon swiped it away. I never thought I'd be saying this — as a disgruntled AT&T customer — but I feel a little sorry for them.

It looked like AT&T had the win, according to the Wall Street Journal. The carrier struck a deal with Straight Path, a small company with big promise. Straight Path is in possession of highly-desired spectrum radio waves. Waves experts believe are ripe for producing 5G connections. AT&T had agreed to purchase Straight Path, with all of their fancy spectrum waves, for $1.6 billion. Not bad for a company worth $400 million only one month before the deal was set to close, huh?

But, as with most stories in the tech world, reality came a-knocking. An undisclosed bidder (although it was most definitely Verizon) started a bidding war with AT&T over the past month. It wasn't until Verizon's $3.1 billion bid that AT&T threw in the towel. Now, Verizon holds every piece of 5G potential that AT&T was so sure they had, and all AT&T gets in return is a termination fee of $38 million. You can just hear Verizon leaving the room saying:

Image by Vivre-Sans/Tumblr

Things could get worse for AT&T from here. We discussed yesterday how, if Sprint and T-Mobile go ahead with a long-rumored merger, they would together have the potential to create a sizeable 5G network. Couple that with Verizon's presumed plans, and you'll have AT&T showing up to a 5G fight packing 4G LTE and not much else.

Oh, I'm sorry, 5G Evolution. Let's see how that works out for them ...

Have an iPhone? See everything that's new with Apple's latest iOS update:

Cover image via Mike Mozart/Flickr

Be the First to Comment

Share Your Thoughts

  • Hot
  • Latest