Qualcomm has said it stands to lose “tens of millions of dollars” if the new US administration is successful in pushing back the deadline for the country’s switch to digital TV (DTV). US broadcasters are currently scheduled to vacate analogue spectrum on 17 February, freeing up space for the companies that bought 700MHz spectrum last year to launch mobile services. However, President Obama has backed proposals to push the digital switchover back to 12 June over concerns that many Americans have yet to update their equipment to receive digital TV. Chipmaker Qualcomm was one of the big spenders in the auction, buying spectrum for US$550 million to roll-out its MediaFLO mobile TV platform. “We are very much opposed to the delay of the DTV transition,” Qualcomm chief operating officer Len Lauer told Dow Jones Newswires last week. “The delay will cost us tens of millions of dollars in extra expense and lost revenue.” CEO Paul Jacobs has also reportedly written a letter to Congress, pleading for the original timeframe to be maintained.
According to Dow Jones Newswires, Qualcomm has invested in equipment and fees to TV broadcasters (in addition to the US$550 million spent in the auction) on the assumption that it could launch MediaFLO services next month. The service is currently offered by AT&T and Verizon Wireless in the US but is deemed to have insufficient geographic coverage at present. Qualcomm said earlier this month it was planning to use the new spectrum to roll-out MediaFLO to more than 100 US markets this year. The delay could also derail the ‘next-generation’ rollout plans by Verizon and AT&T, as both have previously said they plan to use 700MHz spectrum for mobile services based on Long Term Evolution (LTE) technology. Verizon is reportedly planning to launch LTE services before the end of the year, potentially making it the world’s first mobile operator to do so. The US senate could make a decision on the DTV postponement this week.
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