By City News Service
Qualcomm Inc. announced Monday that it has agreed to sell its lower frequency band space to AT&T for $1.93 billion, as part of a restructuring brought about by the impending closure of the San Diego company's
FLO TV division.
FLO TV, an effort to bring television broadcasting to mobile devices, has not been profitable, and is due to shut down service on March 27. Qualcomm announced that some customers will receive rebates on hardware and
subscriptions, depending on when they were purchased.
AT&T will pick up licenses to operate in the 700MHz for future 4G mobile services in five of the largest metropolitan areas of the United States when the deal closes in the second half of next year. The sale still must be approved by regulators.
"This is a positive outcome for Qualcomm and our stakeholders," said Paul Jacobs, Qualcomm's chairman and chief executive.
Jacobs said Qualcomm plans to use its carrier aggregation technology and the experience it gained with FLO TV to develop new systems that address growing demand for high-bandwith video and other multimedia content.
Closing FLO TV is expected to cost the company as much as $175 million in fiscal-year 2011.