FiberTower

About FiberTower

FiberTower Corporation operated as a provider of backhaul services for the wireless carrier market, leveraging a hybrid microwave and fiber network. The company's business was centered on designing, deploying, and operating fixed wireless networks to connect cell phone towers back to landline systems. It generated revenue based on the number of customers at a single site and the quantity of T-1s they utilized.

The company was founded in 2005 by four graduates of the Stanford Graduate School of Business Class of 2000: Scott Brady, David Leeds, Harpinder “Harpi” Singh Madam, and Eric Botto. Their shared background in technology, including roles at Oracle, HP Labs, and Lexmark, fueled their ambition to create a meaningful organization reflecting their values. A significant milestone was the 2006 merger with First Avenue Networks, Inc., a deal valued at approximately $1.5 billion, after which the combined entity traded on NASDAQ as "FTWR". This merger combined First Avenue's FCC-licensed spectrum with FiberTower's existing network and customer contracts. Key investors included Crown Castle International and American Tower Corporation.

FiberTower's core offering was its extensive portfolio of spectrum assets, particularly in the 24 GHz and 39 GHz millimeter-wave bands, which were crucial for the developing 4G and future 5G services. The company provided services in 13 major markets and had secured master service agreements with six of the top wireless carriers in the U.S., including AT&T Mobility, T-Mobile, and Verizon Wireless. However, the company faced significant financial challenges, primarily driven by the termination of contracts with major clients like AT&T and T-Mobile in 2011, which accounted for 63% of its revenue. This led to a Chapter 11 bankruptcy filing in July 2012. After emerging from bankruptcy in 2014, the company continued to navigate regulatory hurdles with the FCC concerning its license buildout requirements. Ultimately, in a move to bolster its 5G spectrum holdings, AT&T announced an agreement to acquire FiberTower in early 2017, a deal that closed in February 2018 for $207 million.