Last month it was reported that AT&T was buying Straight Path, a very important 5G spectrum holder for $1.25 billion. The hefty sum ended up not being enough as Verizon swooped in at the last second and outbid AT&T to acquire Straight Path.

Verizon more than doubled AT&T’s offer, paying a reported $3.1 billion for the array of spectrum holdings. Straight Path is one of the most important millimeter wave spectrum holders with 735mm licenses in 39GHz and 133 licenses in 39GHz.

Reuters reported an unknown buyer placed an order for Straight Path after AT&T put in its offer. It turns out that buyer was Verizon, outmaneuvering AT&T for the highly sought after spectrum.

This is a major blow for AT&T’s plans to build out its 5G network. Every major network has begun developing a 5G network, and its acquisitions like these that build up the infrastructure. AT&T, T-Mobile, Sprint and Verizon have already laid out their plans for 5G network development.

Verizon is paying handsomely for Straight Path

Aside from the enormous $3.1 billion sum, Verizon will also cover a $38 million termination fee Straight Path owes AT&T. At least it won’t be leaving empty-handed.

Unfortunately, Straight Path will have to pay 20 percent of the acquisition sum to the FCC due to a previous settlement, which ends up totaling $620 million.