Qualcomm Confirms It Will Cease FLO TV Consumer Service
Company Expects To Maintain Service Through Spring 2011

By Todd Spangler
Multichannel News

10/5/2010 4:29:09 PM

http://www.multichannel.com/article/458095-Qualcomm_Confirms_It_Will_Cease_FLO_TV_Consumer_Service.php


Qualcomm is throwing in the mobile TV towel.

The San Diego company said it has stopped selling FLO TV 
direct-to-consumer devices and expects to maintain the service for 
existing customers only through the spring 2011. Qualcomm's statement 
Tuesday follows a report by PaidContent.org that Qualcomm would shut 
down the service by the end of 2010.

FLO TV Personal TelevisionQualcomm said it expects some layoffs to 
result from FLO TV's shutdown but that it is "working to redeploy 
impacted employees."
The future of the mobile TV offerings from AT&T and Verizon Wireless -- 
which are delivered by FLO TV over the same 6-MHz slice in the 700-MHz 
band -- remained unclear. Qualcomm declined to provide additional 
information, and the wireless carriers would not comment.

"We have been engaging in conversations with a wide range of partners 
for both the network and the spectrum," Qualcomm said, noting that it 
previously disclosed that it is examining "strategic opportunities" for 
the FLO TV unit. "We are seeing strong interest in using the FLO TV 
network or spectrum to capitalize on the growing imbalance between 
mobile data supply and demand, the growth of tablets, and consumer 
demand for high-quality video and print content, and a richer user 
experience."

FLO TV had deals to carry more than a dozen channels, including CBS 
Mobile, CNBC, Comedy Central, Fox News Channel, MSNBC, MTV, NBC 2Go and 
Nickelodeon. The service cost about $15 per month from Qualcomm, AT&T 
and Verizon Wireless.

Qualcomm added that in the event FLO TV is shut down the company will 
"make appropriate refunds, the details of which will be communicated 
prior to discontinuation."

The company has spent more than $800 million building out FLO TV. In 
March 2008, the company acquired five E-block licenses in the Federal 
Communications Commission's 700-MHz spectrum auction for $554.6 million 
to increase FLO TV coverage.

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Associate Professor     Fax   (713) 743-3927
Political Science       Mail: antunes at uh dot edu
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