AT&T Acquires Qualcomm’s 700 MHZ Spectrum

Although not the same magnitude as the T-Mobile merger, yesterday the FCC approved the sale of Qualcomm’s 700 MHz spectrum to AT&T. The  commission attached a few conditions to the sale. The highly technical and specific conditions concerning interoperability and interference are described by FCC Chairman Julius Genachowski as potentially helpful to smaller operators.

The 700 MHz spectrum was originally purchased and used by Qualcomm to support its  Media FLO TV product, a mobile video service which it shuttered in 2010. As such, the ironic aspect to this purchase is the increasing demand for additional bandwidth by consumers for watching video on AT&T’s mobile phones.

FLO TV at an End?

Citing low subscriber growth during the first three years of operations, Qualcomm is said to be looking closely at options for its FLO TV division. Those options may include selling the division outright, selling the spectrum or finding a partner that can modify the business and take it in a new direction.

Qualcomm reportedly invested $683 million to acquire the wireless spectrum necessary to provide the FLO TV service.  FLO TV provides ESPN, ABC, CNN, CBS and Comedy Central among the approximately 20 live channels carried.  It is not a nationwide service, though it is available in most major cities around the country.

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