AT&T May Spend $1 Billion to Buy Qualcomm's Mobile TV Radio Spectrum
Published on: 21st Nov 2010
Note -- this news article is more than a year old.
Qualcomm is reported to have held talks with US mobile network, AT&T over the possible sale of radio spectrum that Qualcomm picked up for its mobile TV service. Qualcomm paid USD683 million for the 700Mhz band spectrum in two auctions in 2003 and 2008.
Qualcomm Chief Executive Officer Paul Jacobs recently told Bloomberg News that he is considering a range of options for the Flo TV business, including putting it in a joint venture or shutting it down and selling the spectrum. Citing unnamed sources, Bloomberg now added that the company has held talks with several mobile networks, although it is currently only talking to AT&T.
The spectrum could fetch as much as USD1 billion, according to a valuation by Mark McKechnie, a Gleacher analyst in San Francisco. The spectrum covers the U.S. in 6 megahertz blocks, McKechnie added.
"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, while declining to name any of the companies. Michael Buckley, an AT&T spokesman, said the company doesn't comment on speculation.
Qualcomm has said that it will maintain its Flo TV service until next Spring, but wont commit to any service after that.
On the web: Bloomberg News