Comment 4 for bug 1623022

I had the same problem and unsuccessfully tried:

1. the linux-firmware package from yakkety
2. kernel-4.6.3-yakkety
3. kernel-4.7.4
4. sudo modprobe rt2800pci nohwcrypt=Y
5. sudo iw reg set NL

While the newer kernels seemed to alleviate the problem, they didn't fix it.

Then I reverted all the previously listed changes and turned the card's power management off. That fixed it. However, since power management would turn on every time it would connect to a network, I made a simple NetworkManager script, that you can find at http://askubuntu.com/a/825976/349291

The following are some relevant info about my system:

$ uname -a
Linux precision390 4.4.0-36-generic #55-Ubuntu SMP Thu Aug 11 18:01:55 UTC 2016 x86_64 x86_64 x86_64 GNU/Linux

$ iwconfig
wlp5s5 IEEE 802.11abgn ESSID:"<edited>"
          Mode:Managed Frequency:5.18 GHz Access Point: <edited>
          Bit Rate=270 Mb/s Tx-Power=20 dBm
          Retry short limit:7 RTS thr:off Fragment thr:off
          Power Management:off
          Link Quality=42/70 Signal level=-68 dBm
          Rx invalid nwid:0 Rx invalid crypt:0 Rx invalid frag:0
          Tx excessive retries:133 Invalid misc:781 Missed beacon:0

$ apt list linux-firmware
Listing... Done
linux-firmware/xenial-updates,xenial-updates,now 1.157.3 all [installed,automatic]