October 13, 2007

Mobile TV Not Ready For Mainstream

(Credit: Engadget)

Aloha Partners purchased 700Mhz spectrum licenses at the US Federal Communications Commission (USFCC) auctions back in 2001 and 2003. Aloha has used the spectrum for the mobile TV network, Hiwire, and MediaFLO, the mobile TV network of Qualcomm. Unfortunately, with mobile TV subscribers well below forecasted numbers, Aloha Partners has sold their spectrum in the 700Mhz band to AT&T for $2.5 billion pending approval by regulatory bodies. The spectrum licenses cover approximately 196 million people.

Analysts believe that AT&T will most likely use the licenses for two-way cellular services and the sale should be a clear sign that investors are no longer convinced of the viability of mobile TV at this time. Opportunities for revenue from mobile TV services are miniscule compared to those from cellular services, and small mobile TV companies no longer have much of a chance at competing with huge cellular networks at USFCC auctions.

It is interesting to note that AT&T also purchased Hiwire, although the company did not commit to using it in future plans.

Via Red Herring