(NEW YORK)–Hammer Fiber Optic Holdings Corp (OTCMKTS: HMMR) rallies on speculation their partnership with Go Long Wireless could make them an attractive ‘wireless fiber’ buyout target for carriers looking to build out their 5G networks.
Hammer Fiber recently announced it 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.
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.”
Potential Buyout Target
Verizon recently announced the acquisition of $225 million of certain fiber-network assets of WideOpenWest that are currently serving the Chicago market.
This acquisition is another indicator of Verizon’s commitment to invest in high-capacity, multiuse dense metro fiber assets, and the high multiple paid confirms the value they places on fiber ahead of its 5G rollout. On its recent earnings call, Chief Financial Officer Matt Ellis stated Verizon will be adding capacity through a combination of “buying and building fiber,” as well as leasing fiber assets that already exist. We also think the WOW transaction suggests Verizon could be in acquisition mode for more fiber assets.
Straight Path Acquisition
Another example is 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. The desire for STRP assets set off a bidding war between Verizon 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.
The ability for Hammer Fiber (HMMR) and Go Long Wireless to deliver broadband services in what they call the ‘last mile’ to more rural areas without the need to lay expensive optic fiber in the ground could make this play an even more attractive target for larger carriers looking to build out their own 5G network from the urban to more rural areas rapidly.
Hammer Fiber was last traded at around $25 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