YOU ARE AT:Network InfrastructureAT&T and Qualcomm in reported talks about FLO TV spectrum

AT&T and Qualcomm in reported talks about FLO TV spectrum

Qualcomm Inc. (QCOM) has held talks with AT&T Mobility (T) about a possible sale of its spectrum holdings for FLO TV, according to Bloomberg.
There are few details beyond that, although the unnamed sources confirmed that Verizon Wireless (VZ) and T-Mobile USA Inc. have not held any similar talks with the San Diego-based company.
“We are in discussions with a variety of interested parties and are continuing to evaluate other options,” said Bill Davidson, Qualcomm’s senior vice president of investor relations. AT&T could not be reached for immediate comment.
In addition to combining the spectrum with its other holdings in the 700 MHz band, AT&T could feasibly buy and maintain the entire FLO TV network and infrastructure in a move to offload video traffic.
Nonetheless, the spectrum is widely considered to be worth more than the $683 million Qualcomm paid for it in auctions between 2003 and 2008. But the spectrum’s value doesn’t take into account the significant investment Qualcomm laid down to build an entirely new nationwide network built on a proprietary technology.
The company starting making plans for a shutdown last month. During the company’s earnings call earlier this month and without hinting one way or another, Chairman and CEO Paul Jacobs laid out a series of options including a “new wholesale mobile, sale, joint venture with a third party, and/or sale of the spectrum license and discontinuation of the network.” The company expects to take on charges of $125 million to $175 million in the coming year related to the shut down.

ABOUT AUTHOR

Matt Kapko
Matt Kapko
Former Feature writer for RCR Wireless NewsCurrently writing for CIOhttp://www.CIO.com/ Matt Kapko specializes in the convergence of social media, mobility, digital marketing and technology. As a senior writer at CIO.com, Matt covers social media and enterprise collaboration. Matt is a former editor and reporter for ClickZ, RCR Wireless News, paidContent and mocoNews, iMedia Connection, Bay City News Service, the Half Moon Bay Review, and several other Web and print publications. Matt lives in a nearly century-old craftsman in Long Beach, Calif. He enjoys traveling and hitting the road with his wife, going to shows, rooting for the 49ers, gardening and reading.