Corporate IT
WASHINGTON — US communications holding company AT&T (NYSE:T) and mobile technologies provider Qualcomm Incorporated (Nasdaq:QCOM) announced on Monday that AT&T has agreed to purchase spectrum licenses in the Lower 700MHz frequency band from Qualcomm for USD1.925bn.
According to the company, the move will improve AT&T’s ability to provide an advanced 4G mobile broadband experience for its customers in the years ahead.
Qualcomm currently uses the licenses to support the service business of its subsidiary FLO TV Incorporated and the sale follows the company’s previously announced plan to evaluate strategic options for the FLO TV business. The company expects that the FLO TV business and network will be shut down in March 2011.
The spectrum covers more than 300m people total across the USA: 12MHz of Lower 700MHz D and E block spectrum covers more than 70m people in five of the top 15 US metropolitan areas; 6MHz of Lower 700MHz D block spectrum covers more than 230m people across the rest of the USA.
AT&T intends to deploy this spectrum as supplemental downlink, using carrier aggregation technology. The company said it expects to begin deploying this spectrum once compatible handsets and network equipment are developed.
The companies anticipate closing the sale during the second half of calendar year 2011, subject to regulatory approvals and other customary closing conditions.
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