FLO TV features simulcast and time-shifted broadcast content from partners including ABC, CBS, NBC, Fox, ESPN, MTV and CNN. 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 network, but fewer than 1 million customers signed up for the service. Qualcomm expects its exit from the FLO business to incur charges between $125 million and $175 million in fiscal 2011.
Qualcomm first acknowledged plans to divest FLO TV in late July; 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. Last month, Bloomberg reported Qualcomm entered talks with AT&T
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