Qualcomm confirms FLO TV to shut down in spring 2011

Qualcomm (NASDAQ:QCOM) confirmed reports it will shutter its struggling FLO TV mobile broadcast effort, halting direct-to-consumer sales of new devices but committing to delivering programming to existing subscribers through the spring of 2011. In a statement, Qualcomm said it remains in talks with a range of partners, exploring strategic options for both the FLO TV service and its associated wireless spectrum. "We are seeing strong interest in using the FLO TV network or spectrum to capitalize on the growing imbalance between mobile data supply and demand, the growth of tablets, and consumer demand for high quality video and print content, and a richer user experience," the company stated.  

Qualcomm said the white-label FLO TV services offered by operator partners Verizon Wireless and AT&T remain unaffected, at least for now. "In the event of a discontinuance of service, FLO TV will make appropriate refunds, the details of which will be communicated prior to discontinuation," Qualcomm notes, adding that while it is working to redeploy employees impacted by the FLO TV shutdown, layoffs are expected.

FLO TV features simulcast and time-shifted broadcast content from partners including ABC, CBS, NBC, Fox, ESPN, MTV and CNN. Subscriber numbers are unknown. Initially available only in limited markets, FLO TV went nationwide in mid-2009 in conjunction with U.S. broadcasters' long-planned transition from analog to digital, which freed up the necessary spectrum. Qualcomm reportedly spent $683 million acquiring the spectrum to run FLO TV, stating it would invest about $800 million in total (including spectrum, network build-out and marketing costs) to launch the service.

Qualcomm first acknowledged plans to divest FLO TV in late July. Qualcomm chairman and CEO Paul Jacobs said at the time the company was exploring "a number of alternatives" for the unit, including discussions with prospective partners. At the company's Uplinq 2010 developer conference in San Diego a few weeks prior, Jacobs explained it was never Qualcomm's intention to become the service provider operating the FLO TV network.

For more on FLO TV's fate:
- read this release

Related articles:
Qualcomm pulls the plug on FLO TV
Qualcomm in discussions to sell off FLO TV unit
FLO TV: We need more phones, new services to succeed
Qualcomm CEO: FLO TV numbers 'not nearly what we expected'
FLO TV adds interactive features, time-shifted viewing