Qualcomm today announced that it has agreed to sell its Lower 700 MHz D and E Block (Channel 55 and 56) unpaired U.S. spectrum licenses to AT&T for $1.925 billion.
The sale follows Qualcomm?s previously announced plan to restructure
and evaluate strategic options related to the FLO TV business
operated by FLO TV Incorporated, a wholly owned subsidiary of
Qualcomm. It is expected that the FLO TV business and network will be
shut down in March 2011.
AT&T announced today that as part of its longer-term 4G network plan,
it intends to deploy this spectrum as supplemental downlink, using
carrier aggregation technology. This technology is designed to
deliver substantial capacity gains by enabling unpaired spectrum to
be used in conjunction with paired spectrum.
Qualcomm 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.
Qualcomm plans to take advantage of its experience in broadcast
technology to develop LTE multicast technologies that address the
rapidly growing demand for high-bandwidth video and other multimedia
Completion of the spectrum transaction is subject to the satisfaction
of customary closing conditions, including approval by the U.S.
Federal Communications Commission and clearance from the U.S.
Department of Justice. Qualcomm and AT&T anticipate closing the sale
during the second half of calendar 2011. The proceeds will be
received at closing.