The United States Federal Communications Commission (FCC) has levied a hefty fine of $100 million on Straight Path Spectrum for using unlicensed 5G network spectrums. Straight Path Spectrum agreed to pay the penalty. It will also surrender most of the company's licenses and sell the rest.

The FCC confirmed that Straight Path Spectrum holds licenses in the 28GHz and 39Ghz spectrums, both of which are vital in terms of next generation cellular network technology. The FCC added that Straight Path Spectrum acquired those licenses in 2013 and 2014 on condition that the company will use them to provide services to the general public.

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According to Computer World, an anonymous report accused Straight Path Spectrum of not building the 39GHz systems that the company promised the FCC were completed. Straight Path Spectrum consequently hired the services of Morgan, Lewis & Bockius law firm to conduct an investigation. The firm later found out that a majority of the company's equipment were installed only for a short time operational basis and were never used as in permanent network operations.

Based on the FCC's regulation, Straight Path Spectrum may not have to pay the whole $100 million penalty. According to RCR Wireless, the firm is required to pay $15 million over a period of nine months. The remaining $85 million would be paid conditional to the company's decision to transfer or assign its licenses within the next 12 months. Should Straight Path Spectrum successfully sells any of its licenses, the firm is required to pay 20 percent of the proceeds as an additional penalty.

The 28GHz and 39GHz spectrums have been used in the past for wireless backhaul between wired backbone networks and cellular sites. However, recent developments revealed that millimeter-wave radio technology could utilize these spectrums as possible options for delivering next generation cellular service.