Lehman Brothers: Qualcomm's Mobile Video Deal With Verizon Wireless is 'A Major Milestone' (QCOM, VZ)

Includes: QCOM, VZ

A positive development for Qualcomm (ticker: QCOM) -- on Friday, QCOM announced that its MediaFLO multicasting network will be working with Verizon Wireless to launch that carrier's mobile TV services. In a note to clients, Lehman Brothers' Tim Luke -- who has an 'overweight' rating on QCOM -- commented on timing and implications:

Both companies expect the initial launch of mobile TV services over the MediaFLO network to take place in approximately half of the markets that are already covered by Verizon Wireless' EV-DO network. MediaFLO plans to expand its services throughout Verizon's other markets following its initial launch. We believe that the announced partnership is a major milestone for MediaFLO to receive a key carrier endorsement. We believe target is to start services in October 2006.

With respect to QUALCOMM, we believe December Q trends remain solid and believe our CY06 EPS estimates of $1.49 remains conservative.

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