AT&T Buys FLO TV Spectrum from Qualcomm

FLOTV.jpg

AT&T
and Qualcomm announced today that AT&T has agreed to
purchase spectrum licenses--in the Lower 700 MHz frequency band that's used for the soon-to-be phased-out FLO TV service--from
Qualcomm for $1.925 billion.  The spectrum will be used for supplemental downlink for AT&T's 4G rollout.

The move will bolster 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 FLO TV Incorporated, a wholly owned subsidiary of Qualcomm.  The
sale follows Qualcomm's previously announced plan to evaluate strategic
options for the FLO TV business.  Qualcomm expects that the FLO TV
business and network will be shut down in March 2011.

The spectrum covers more than 300 million people total nationwide: 12MHz of Lower 700MHz D and E block spectrum covers more than 70 million
people in five of the top 15 U.S. metropolitan areas - New York,
Boston, Philadelphia, Los Angeles and San Francisco.  6MHz of Lower 700
MHz D block spectrum covers more than 230 million people across the rest
of the U.S.

As part of its longer-term 4G network plans, AT&T intends to
deploy this spectrum as a supplemental downlink, using carrier aggregation
technology.  This technology is designed to deliver substantial capacity
gains and is expected to be enabled with the completion of 3GPP Release
10.  AT&T expects to begin deploying this spectrum once compatible
handsets and network equipment are developed.

As more fully described in its separate announcement today, Qualcomm
intends to integrate carrier aggregation technology into its chipset
roadmap to enable supplemental downlink to address increased consumer
demand for rich mobile media content.  AT&T expects to deploy this
technology, demonstrating its commitment to deliver a great mobile
broadband experience - now and in the future.

The transaction is subject to regulatory approvals and other
customary closing conditions, and AT&T and Qualcomm anticipate
closing the sale during the second half of calendar year 2011.

AT&T products and services are provided or offered by
subsidiaries and affiliates of AT&T Inc. under the AT&T brand
and not by AT&T Inc.