Frontline ‘closed for business’: With its extensive connections, firm’s ultimate fate is unclear

The future of Frontline Wireless L.L.C., the Silicon Valley-backed and politically connected startup that spent months positioning itself to bid big in the upcoming 700 MHz auction, has suddenly become shrouded in mystery.
“Frontline is closed for business at this time. We have no further comment,” Frontline said in a statement.
Frontline, which filed a short-form application to bid in the upcoming auction, declined to comment on whether it had submitted the upfront payment required for 700 MHz auction participation. The upfront payments were due by Jan. 4; upfront payments establish the initial eligibility of bidders and represent the maximum number of bidding units on which applicants will be permitted to bid initially. The Federal Communications Commission has not named the entities that have made upfront payments for the 700 MHz auction.
Click here for complete 700 MHz auction coverage.
Although Frontline is “closed for business,” elements of the firm may well show up in the 700 MHz auction proceedings. Frontline’s principals and its financial backers have relationships of varying degrees with other parties, including Backline and Cellular South Licenses Inc., which filed short-form applications to compete in the 700 MHz auction.
In its auction application, Backline lists bidding agreements with Frontline, Providence Equity Partners VI L.L.C., Licenseco L.L.C. (Frontline’s short-form application filing name) and FIF V Spec D L.L.C. Significant among Backline’s owners listed on its short-form application is Fortress Investment Group L.L.C.
Providence is a private-equity firm, and Fortress manages hedge- and private-equity funds. Fortress went public last year, the first hedge firm to do so. Cellular South is a regional wireless provider; in 2006, the carrier picked up 12 licenses in the advanced wireless services auction for $33 million.
The Federal Communications Commission has strict anti-collusion rules governing communications by applicants vying for the 1,099 licenses in an auction scheduled to start Jan. 24. The spectrum up for grabs could generate between $10 billion and $15 billion for the U.S. Treasury.
Frontline has long stated its intent to successfully bid on the national commercial-public safety broadband license. The upfront payment for that license — the D block — is $128 million. The upfront payment on the other high-profile spectrum up for grabs — the open-access C Block — is $282 million.