Spectrum sale casts doubt on Hiwire's future

AT&T has agreed to purchase wireless spectrum licenses totaling $2.5 billion from privately-held Aloha Partners, parent firm of Hiwire, the DVB-H-based mobile broadcast TV service which this summer launched consumer trials in Las Vegas. The spectrum acquired by AT&T spans roughly 196 million consumers across 72 of the nation's top 100 markets. The sale's impact on the future of the Hiwire initiative is presently unknown--Aloha had previously stated its goal was to launch a nationwide mobile TV service in conjunction with a major wireless, cable or Internet partner, and inaugurated Hiwire's Las Vegas trial in cooperation with T-Mobile.

Providence, Rhode Island-based Aloha was a dominant player in the FCC's 2001 and 2003 700 MHz auctions, and subsequently acquired several other firms with 700 MHz spectrum rights. Prior to the AT&T deal, Aloha owned 12 MHz of spectrum in all of its markets, spanning 85 percent of the population in the top 50 U.S. markets. As recently as mid-September, Aloha continued its spectrum shopping spree, acquiring 31 licenses in the lower 700 MHz band from station group LIN TV Corp. for $32.5 million in cash.

In late July, broadcasting and mobile infrastructure provider Crown Castle pulled the plug on subsidiary Modeo's DVB-H mobile TV service, leasing its nationwide 1670-1675 MHz spectrum to a venture formed by Telcom Ventures and Columbia Capital for $13 million annually through 2013. After more than three years of development, Crown Castle International in January finally announced the Big Apple beta launch of Modeo's live mobile TV service. Crown Castle had planned to launch the Modeo network without pursuing carrier partnerships, instead focusing on securing wholesale partnerships with wireless operators.

FierceMobileContent's attempts to contact Aloha Partners prior to deadline were unsuccessful.

For more on the AT&T/Aloha Partners deal:
- read this Wall Street Journal article

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