Satellite Technology News

powered by google

Satellite Spotlight:  

Satellite Technology RSS Feed
Share

TMCNet: Qualcomm to sell 700 MHz spectrum licenses to AT&T for USD1.925bn

[December 21, 2010]

Qualcomm to sell 700 MHz spectrum licenses to AT&T for USD1.925bn

Dec 21, 2010 (M2 EQUITYBITES via COMTEX) -- Provider of mobile technologies Qualcomm Incorporated (Nasdaq:QCOM) has agreed to sell its Lower 700 MHz D and E Block (Channel 55 and 56) unpaired US spectrum licenses to AT&T (NYSE:T) for USD1.925bn.

This sale announced on Monday, follows Qualcomm's previously announced plan to restructure and evaluate strategic options related to the FLO TV business operated by FLO TV Incorporated, the company's wholly owned subsidiary.

The FLO TV business and network is expected to shut down in March 2011.

Restructuring charges related to the FLO TV service business were previously estimated by Qualcomm to be in the range of USD125m to USD175m 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.

Now, 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.

As a part of its longer-term 4G network plan, AT&T intends to deploy this spectrum as supplemental downlink, using carrier aggregation technology.

This technology is reportedly designed to deliver substantial capacity gains by enabling unpaired spectrum to be used in conjunction with paired spectrum.

Qualcomm said that it 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.

Completion of the spectrum transaction, which is subject to the satisfaction of customary closing conditions, including approval by the US Federal Communications Commission and clearance from the US Department of Justice, is expected to occur during the second half of calendar 2011.

Comments on this story may be sent to info@m2.com

[ Satellite Spotlight's Homepage ]

blog comments powered by Disqus

FREE Satellite eNewsletter

Subscribe to our free weekly Satellite Spotlight eNewsletter!

Get the latest expert news, reviews & resources. Tailored specifically for Satellite Technology and Communications.

Satellite Technology White Papers

Innovative Features Mean Major Savings for Cellular Operators Using Satellite Backhaul
With the rising cost of satellite bandwidth and the need for more of it to support an ever increasing number of voice, data and now video services, operators must seek ways to reduce both their hardware investment costs and operating expenses, especially when fierce competition forces them to provide these new services without raising their rates.
View More »

Satellite Technology Features