Qualcomm has agreed to sell its 700MHz spectrum holdings to AT&T for USD 1.925 billion. The radio frequencies used for the Flo mobile TV service will support AT&T's launch of LTE services. Qualcomm already announced the shutdown of the unsuccessful Flo service, which is scheduled for March 2011. The spectrum covers some 300 million people in the US: 12 MHz of Lower 700 MHz D and E block spectrum covering more than 70 million people in five of the top 15 US metro areas (New York, Boston, Philadelphia, Los Angeles and San Francisco) and 6 MHz of Lower 700 MHz D block spectrum covering more than 230 million people across the rest of the country. AT&T said it will use the spectrum as supplemental downlink, using carrier aggregation technology. Designed to deliver substantial capacity gains by enabling unpaired spectrum to be used with paired spectrum, the technology is expected to form part of 3GPP Release 10, also known as LTE-Advanced, which is expected to be finalised next year. AT&T expects to begin deploying this spectrum once compatible handsets and network equipment are developed. Qualcomm has incorporated carrier aggregation technology into its chipset roadmap to enable supplemental downlink and intends to market the technology globally. The companies expect to close the spectrum sale in the second half of 2011, subject to FCC and Department of Justice approval. Qualcomm said it expects additional costs to the USD 125-175 million previously disclosed for the shutdown of Flo as a result of the spectrum sale.
