Qualcomm Announces FCC Approval of Sale of 700 MHz Spectrum Licenses to AT&T
SAN DIEGO, Dec. 23, 2011 /PRNewswire-FirstCall/ -- Qualcomm Incorporated (NASDAQ: QCOM) today announced that the U.S. Federal Communications Commission has approved the sale of its Lower 700 MHz D and E Block (Channel 55 and 56) unpaired U.S. spectrum licenses to AT&T. The sale by Qualcomm to AT&T of the licenses for $1.925 billion was originally announced in December, 2010. The proposed transaction has been pending subject to the satisfaction of the conditions of closing.
In connection with the announcement of the transaction in 2010, AT&T indicated that, as part of its longer term 4G network plan, it intends to deploy this spectrum as supplemental downlink, using carrier aggregation technology. This new technology is designed to deliver substantial capacity gains by enabling unpaired spectrum to be used in conjunction with paired spectrum for 4G services.
Qualcomm is integrating carrier aggregation technology into its chipset roadmap to enable supplemental downlink and intends to market the technology globally. This new technology is expected to create opportunities around the world in regions where unpaired spectrum bands can be made available for wireless operators to use in conjunction with existing paired bands in order to obtain substantial improvements in their mobile broadband networks.
"We are very pleased that the FCC has approved the sale of our spectrum licenses and look forward to working with AT&T to deploy supplemental downlink. This is a positive outcome for Qualcomm and our stakeholders," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "We would like to express our appreciation to FCC Chairman Julius Genachowski, his fellow FCC Commissioners and the FCC staff. The use of supplemental downlink will enable the efficient use of unpaired spectrum for mobile broadband in the U.S. and a richer, faster mobile experience for consumers."
Qualcomm Incorporated (NASDAQ: QCOM) is a world leader in next-generation mobile technologies. For 25 years, Qualcomm ideas and inventions have driven the evolution of wireless communications, connecting people more closely to information, entertainment and each other. Today, Qualcomm technologies are powering the convergence of mobile communications and consumer electronics, making wireless devices and services more personal, affordable and accessible to people everywhere. For more information, visit Qualcomm around the Web:
Corporate Blog: www.qualcomm.com/blog
In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including the ability to timely close the sale of the referenced spectrum licenses as contemplated by the parties; the effect on the timely closing of the transaction and on the transaction as a whole as a result of any appeal of the FCC's order; the expected benefits of the transaction; management plans relating to the transaction; any statements of the plans, strategies and objectives of management for future operations, including the development of supplemental downlink technology, the integration of supplemental downlink technology into the Company's chipsets, the development of carrier aggregation and 4G multicast technologies and the availability and deployment of carrier aggregation and 4G multicast technologies; any statements of expectation or belief, including the benefits of carrier aggregation, supplemental downlink and 4G multicast technologies; and any statements of assumptions underlying any of the foregoing; as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 25, 2011. The Company undertakes no obligation to update, or continue to provide information with respect to, any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
Qualcomm is a registered trademark of Qualcomm Incorporated. All other trademarks are the property of their respective owners.
Emily Kilpatrick, Corporate Communications
Warren Kneeshaw, Investor Relations
SOURCE Qualcomm Incorporated