Cellular/broadcast tower operators Crown Castle and American Tower, which previously created a joint venture in FiberTower, said Monday that they will merge with First Avenue Networks. First Avenue operates a “last mile” broadband wireless system in the 24/39 GHz bands.
The First Avenue/FiberTower merger is valued at approximately $1.5 billion.
First Avenue will issue 73.7 million shares worth about $873 million, reports The Street. It will bring FiberTower public under the First Avenue Networks’ ticker, FRNS. FiberTower will own 51 percent of the combined entity. It would have an installed base in 12 markets with more than 1000 sites
First Avenue Networks (above) bought out the radio spectrum assets of bankrupt of Advanced Radio Telecom (at 39GHz) and Teligent (at 24 GHz) and now has 24/39 GHz licenses throughout the United States with deep coverage in 77 metropolitan areas.
Competitor XO (above), plans to sell its national wired network for $700 million and become a leading provider of fixed broadband wireless. XO is one of the largest holders of fixed wireless licenses in the 28 GHz-31 GHz spectrum covering more than 70 U.S. major metropolitan markets. XO owns “the lion’s share” of A-band 28 GHz spectrum in the United States, as well as some B-band spectrum.
Crown Castle USA currently owns, operates and manages more than 10,000 sites, more than 20,000 tenant licenses, and more than 8,000 ground leases in 44 states. American Tower, headquartered in Boston, owns and operates over 30,000 sites in the United States, Mexico and Brazil.
The FCC awarded 986 LMDS licenses with 2 licenses in each of 493 Basic Trading Areas (BTAs). LMDS gear is available from Ceragon and others. Bringing broadband backhaul, like First Avenue, under the tent of a tower operator like FiberTower may be a good move. It may put XO on the defensive to find good rooftop locations.
GigaBeam, a 70 GHz/1 Gbps backbone radio technology and ADAPTIX, a WiMax and WiBro compatible company focused on 802.16e-like mobile broadband gear, have joined forces to co-market their complementary product lines. They plan to provide fast broadband data services with mobility for enterprises and residential broadband subscribers.
GigaBeam’s WiFiber operates in the licensed 71-76 GHz and 81-86 GHz radio spectrum bands for point-to-point communications at gigabit speeds.
Related DailyWireless articles include; Mapping Cell Towers, Clearwire to issue a $400M IPO, Jump to Light Speed, 60 Ghz Long Shot, Re-animating Backhaul, FCC Liberalizes 70-90 GHz, Gigabit WiFi, 60 GHz Radios, YDI Goes 24GHz, Dartmouth’s Triple Play, GigE to the Home – Wireless Next?, GigE WiMax? and More Gigabit Wireless.
