“The wireless chip manufacturer in October announced a device-sales suspension for its mobile broadcast video service, taking the first steps toward scuttling its entire project and freeing up some valuable wireless spectrum for sale. At the time, Qualcomm said customers would continue to receive programming into the spring,” Dow Jones reports. “It disclosed Monday that FLO TV will be shut down in March.”
Read more in the full article here.
The companies’ joint pres release, verbatim:
AT&T and Qualcomm Incorporated announced today that AT&T has agreed to purchase spectrum licenses in the Lower 700 MHz frequency band from Qualcomm for $1.925 billion. The move will bolster AT&T’s ability to provide an advanced 4G mobile broadband experience for its customers in the years ahead.
Qualcomm currently uses the licenses to support the service business of FLO TV Incorporated, a wholly owned subsidiary of Qualcomm, and the sale follows Qualcomm’s previously announced plan to evaluate strategic options for the FLO TV business. Qualcomm expects that the FLO TV business and network will be shut down in March 2011.
The spectrum covers more than 300 million people total nationwide: 12 MHz of Lower 700 MHz D and E block spectrum covers more than 70 million people in five of the top 15 U.S. metropolitan areas — New York, Boston, Philadelphia, Los Angeles and San Francisco; 6 MHz of Lower 700 MHz D block spectrum covers more than 230 million people across the rest of the U.S.
As part of its longer-term 4G network plans, AT&T intends to deploy this spectrum as supplemental downlink, using carrier aggregation technology. This technology is designed to deliver substantial capacity gains and is expected to be enabled with the completion of 3GPP Release 10. AT&T expects to begin deploying this spectrum once compatible handsets and network equipment are developed.
As more fully described in its separate announcement today, Qualcomm intends to integrate carrier aggregation technology into its chipset roadmap, to enable supplemental downlink to address increased consumer demand for rich mobile media content. AT&T expects to deploy this technology, demonstrating its commitment to deliver a great mobile broadband experience — now and in the future.
The transaction is subject to regulatory approvals and other customary closing conditions, and AT&T and Qualcomm anticipate closing the sale during the second half of calendar year 2011.
Sources: AT&T Inc., Qualcomm Incorporated
Qualcomm’s related press release:
Qualcomm Incorporated today announced that it has agreed to sell its Lower 700 MHz D and E Block (Channel 55 and 56) unpaired U.S. spectrum licenses to AT&T for $1.925 billion. The sale follows Qualcomm’s previously announced plan to restructure and evaluate strategic options related to the FLO TV business operated by FLO TV Incorporated, a wholly owned subsidiary of Qualcomm. It is expected that the FLO TV business and network will be shut down in March 2011.
AT&T announced today that as part of its longer-term 4G network plan, it intends to deploy this spectrum as supplemental downlink, using carrier aggregation technology. This technology is designed to deliver substantial capacity gains by enabling unpaired spectrum to be used in conjunction with paired spectrum.
Qualcomm is integrating carrier aggregation technology into its chipset roadmap to enable supplemental downlink and intends to market the technology globally. This new technology is expected to create opportunities around the world in markets where unpaired spectrum bands can be made available for wireless operators to use in conjunction with existing paired bands to obtain substantial improvements in their mobile broadband networks.
Qualcomm plans to take advantage of its experience in broadcast technology to develop LTE multicast technologies that address the rapidly growing demand for high-bandwidth video and other multimedia content.
“This is a positive outcome for Qualcomm and our stakeholders,” said Paul Jacobs, chairman and CEO of Qualcomm. “Carrier aggregation, supplemental downlink and LTE multicast technologies are an exciting evolution of next generation wireless systems to economically support increasing consumer demand for mobile TV and other rich media content. We will continue to drive the development and delivery of these new capabilities, which build on our technology leadership and deep experience with 3G, 4G and broadcast technologies.”
Completion of the spectrum transaction is subject to the satisfaction of customary closing conditions, including approval by the U.S. Federal Communications Commission and clearance from the U.S. Department of Justice. Qualcomm and AT&T anticipate closing the sale during the second half of calendar 2011. The proceeds will be received at closing.
Restructuring charges related to the FLO TV service business were previously estimated to be in the range of $125 million to $175 million in fiscal 2011, primarily related to certain contractual obligations, with the potential for additional charges depending on the outcome of the evaluation of strategic options for the business. As a result of this agreement to sell the spectrum licenses, it is anticipated that additional charges will be incurred related to the shut down of the FLO TV network and associated business exit costs.
Source: Qualcomm Incorporated
Jumping to conclusions here — and why not?
An LTE iPhone in March/April time frame?
Would fit with a CDMA/GSM/LTE iPhone that would cover all but Sprint. It’s doable, but will Apple actually do it?
Want a 20 Mbps iPhone anyone?
FLO TV was such a stupid idea to begin with when phones are as powerful as they are today. It was yet another device they wanted people to carry around.
Does this mean ATT will finally finish its 3G rollout….?
I think they paid Jim Nantz more money than product they sold.
I tried FLO TV, but it made me irritable every 28 days.
Bring it to where the people are and I’ll be impressed.
Houston has more people than San Fran and Boston combined, current projections show San Antonio knocking off Philly in a year, and both Dallas and Austin are growing at a torrid pace.
“…spectrum covers more than 300 million people…”
This sounds like hype. This does not mean AT&T now has the bandwidth or capacity to serve 300 million customers — that would depend on the number of compatible receiver/transmitters the company installs on towers…My guess: this will take years to roll out.
no one outside texas cares about that state. Why would they? only thing they got is steers & queers
@ fred
And they also have oil.
Oil that actually belongs to the United States.
fred@3:13 PM
Out for Christmas break?
Remember, Santa is watching….