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AT&T Agrees to Buy Flo TV Spectrum From Qualcomm for $1.93 Billion

AT&T the nation’s second largest wireless provider, today announced they are buying the FLO TV spectrum from Qualcomm for $1.93 Billion.  Qualcomm secured the spectrum in various FCC auctions from 2003-2008 for a reported $683 million.

The spectrum that Qualcomm is selling to AT&T is very high quality spectrum in the 700mhz frequencies. Because of their national plans for FLOTV the spectrum fares especially well in major metropolitan areas and has great building penetration.  AT&T has been plagued with reported problems for iPhone reception in major cities such as New York and San Francisco.  This spectum should allow AT&T to provide better coverage to those using their services in those cities.

The FLO TV spectrum will also be instrumental in helping to deal with the backhaul associated with things like downloading video.  According to reports the spectrum covers a total of 300 million pops and AT&T is paying a reported 87 cents per person it covers.

The FLO TV spectrum will play well into AT&T’s plans for “4G’ as they evolve their network.

Earlier in the month Qualcomm announced it would refund all of their customers the cost of their Flo TV hardware.

Source: Bloomberg