Count down for the Shut down of Qualcomm FLO TV Mobile TV Service Begins

As we reported back in mid summer, Qualcomm  will finally shutter its FLO TV mobile TV subscription service by the end of this year. After hesitantly entering the direct-to-consumer side of the space just a couple years ago, Qualcomm is now cutting its losses on that front and is in the process of shutting down FLO TV.

The company is reportedly in talks with distribution partners AT&T and Verizon about the future of FLO TV, which launched via partners in 2004 and debuted its direct-to-consumer version in 2008.

There’s no doubt many in the industry will see the shutting down of FLO TV as a major loss for Qualcomm. The direct-to-consumer service was a small percentage of FLO’s overall business, but the company won’t say how many customers will be affected by the shut down. Also, job losses would be unlikely since Qualcomm tends to absorb shifts like this and moves employees around often.

Qualcomm still has multi-billion-dollar value in the 700 MHz spectrum used for the FLO TV offering, but it’s also spent billions building out an entirely new wireless network for mobile broadcast TV, developing the technology and staffing a workforce necessary for a first-of-its-kind nationwide service. The spectrum alone dedicated to FLO TV is “worth almost $2 billion.

Now that Qualcomm is putting its costly direct-to-consumer endeavor to rest, the company wants to pursue other wholesale arrangements that could take advantage of its network and MediaFLO technology.

I wonder how all this will effect the mobile DTV test project that started in the Washington, D.C. area early summer. Anyone?

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About Elias Shams
I have been a serial entrepreneur in telecom and social media space for past 12 years or so. I hold a M.S. degree in Telecommunication Engineering from the George Washington University and a B.S. degree in Electrical Engineering from the University of Maryland. I’ve lived and worked in many countries and cities including London England, Tehran Iran, Bonn Germany, Paris France, Alicante Spain, Delhi India, and my favorite of all Washington, DC of great US of A. Two of the greatest Washington, DC based companies I worked for and very proud of are Yurie Systems which was sold to Lucent in 1998 for $1.23 B and telezoo.com that I founded in 1999. I am currently the founder and awesomizer @ awesomize.me

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