(NEW YORK)--Hammer Fiber Optic Holdings Corp (OTCMKTS: HMMR) has teamed up with Go Long Wireless, Ltd. (GLW), a company based in Sarasota Florida that holds 12 GHz Multichannel Video Distribution and Data Service (MVDDS) spectrum in 49 U.S. markets, reaching a population in excess of 29 million.
This new partnership will enable Hammer Fiber to expand its successful business model of delivering a bundle of high speed broadband, TV, and VoIP phone service to these additional 49 markets, including underserved rural communities.
Wireless Fiber for Rural Last Mile
Google Fiber announced in late 2016 that it would turn to ‘wireless fiber’ for its last mile delivery due to the high deployment costs of laying land optic fiber lines. Google said it hoped to go wireless in markets such as Chicago, Los Angeles, Dallas, which could provide increased interest in ‘wireless fiber’ players, such as Hammer Fiber, and their ability to reach in to more rural areas for last mile delivery.
Bruce Fox, the CEO of Go Long Wireless commented, "With our licensed footprint covering over a third of the U.S. landmass, Hammer Fiber is the perfect partner to leverage our expansive spectrum holdings for the delivery of broadband services that both rural and urban consumers demand and deserve. They have the only technology that can currently exploit our spectrum's extensive capacity to its full potential."
Possible Acquisition Target
The Company's ability to now reach into 49 states, both urban and rural, could position Hammer Fiber as a potential acquisition target for last mile delivery for some of the bigger players in the space, like Google Fiber (NASDAQ:GOOGL) or AT&T AirGig (NYSE:T).
Case in point, take a look at what happened to Straight Path Communications, Inc. (NYSEMKT:STRP), an owner of much sought after bandwidth spectrum. STRP held a large inventory of 28 GHz and 39 GHz millimeter wave spectrum used in mobile communications that would give a new owner an advantage in 5G development. Well this set off a bidding war between Verizon (NYSE:VZ) and AT&T that sent Straight Path stock from around $35 a share to high of $230 in just one month.
Verizon and AT&T were seeking to gain an edge in the race to develop out a fifth-generation network (5G) that would offer faster downloads and boost internet-reliant products such as self-driving cars.
Verizon won out the bidding war announcing in May 2017 that they would acquire Straight Path for $184 a share in an all-stock transaction, reflecting an enterprise value of approximately $3.1 billion.
Now some speculate that with the combination of Hammer Fiber unique 'wireless fiber' technology, and Go Long Wireless 12 GHz Multichannel Video Distribution and Data Service (MVDDS) spectrum in 49 states, that this new partnership may trigger off a potential bidding fight over Hammer Fiber like we saw in STRP back in the spring of 2017.
Hammer Fiber was last traded at around $35 per share under the ticker symbol "HMMR".
About Hammer Fiber
Hammer Fiber Optic Holdings Corp. (OTCQB: HMMR) is a telecommunications company investing in the future of wireless technology whose holdings include Hammer Fiber Optic Investments, Ltd. D/B/A Hammer Fiber, a New Jersey-based Internet Service Provider (ISP) that offers internet, voice, video and data services in New Jersey, as well as carrier services in Philadelphia and New York. Hammer Fiber serves residential and small business markets with high capacity broadband, voice and video through both direct fiber as well as its wireless fiber platform, Hammer Wireless® AIR technology. For more information visit http://www.hammerfiber.com
About Go Long Wireless
Go Long Wireless, LTD is a Florida based wireless spectrum holding company with an extensive spectrum portfolio designed to enable ultra-broadband services to rural and urban communities across the U.S. For more information please visit www.golongwireless.com