AT&T Will Use QualComm's MediaFLO TV Technology

AT&T's Cingular Wireless unit will use QualComm's MediaFLO network to broadcast TV programs to cellphones in about 30 metropolitan markets starting in late 2007. AT&T is QualComm's second customer for the service after Verizon. MediaFLO has arrangements in place to provide TV content from CBS, Fox and Comedy Central. It is also planning to provide information services like live stock quotes and sports scores. Some analysts consider the deal a "huge" positive for QualComm, while others doubt consumer interest in watching TV on their phones -- particularly when new phones will need to be purchased that can access the MediaFLO signal. Cingular is not yet commenting on pricing for the service. Wireless competitor Crown Castle International, which is constructing a rival network called Mondeo, has not yet landed any customers, and its shares fell 2.5% on QualComm's announcement of the Cingular deal. Mondeo is based on DVB-H, the predominant wireless platform in Europe. In Britain, BSkyB tested MediaFLO and found it to have ''considerable technical advantages'' over DVB-H.

Sources: New York Times, MarketWatch,Reuters, Barrons
Commentary: Verizon's New Mobile TV Service Announced At CES • Cingular Triples Profits On Addition of 2.4 Million New Subscribers • Lehman Brothers: Qualcomm's Mobile Video Deal With Verizon Wireless is 'A Major Milestone'
Stocks/ETFs to watch: AT&T Inc. (T), QualComm Inc. (QCOM). Competitors: Crown Castle International Corp. (CCI), Nokia Corp. (NOK), Sprint Nextel Corp (S), Texas Instruments Inc. (TXN). ETFs: Broadband HOLDRs (BDH), Wireless HOLDRs (WMH), First Trust Morningstar Dividend Leaders Idx (FDL), WisdomTree High-Yielding Equity (DHS), WisdomTree LargeCap Dividend (DLN)

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