Qualcomm has previously expressed its interest in selling or restructuring its mobile broadcast service division due to a lack of subscriber uptake and high capital expenditure; Qualcomm has spent over $1bn on its mobile TV venture and is struggling to see any return.
However, this does not mean that Qualcomm will necessarily abandon the MediaFLO technology all together. The company is pushing for its adoption in other markets such as Japan, Hong-Kong and Taiwan. In addition, Qualcomm has developed some important assets through its FLO TV business, including a nationwide mobile broadcast network infrastructure and the corresponding spectrum, worth in excess of $1.5bn.
The current high levels of data consumption experienced by mobile operators on their 3G/4G networks have become problematic by either endangering the quality of experience for smartphone users and/or the profitability of the mobile data business. Qualcomm's MediaFLO network could be used as a way to off-load congested cellular networks by broadcasting top YouTube videos and popular web pages and content directly to mobile handsets and 3G/4G USB keys. However, the deployment of 4G technologies such as LTE and WiMAX are well underway and tend to alleviate the need for a dedicated mobile broadcast network, at least in the top-tier operator group.