Qualcomm (QCOM) confirmed in a statement that it has suspended sales of direct-to-consumer FLO TV devices, but will maintain the network for now, with service to continue into Spring 2011.
Service provided through wireless carriers – the company has deals with both Verizon Wireless and AT&T -is “unaffected at this time,” the company said. “In the event of a discontinuance of service, FLO TV will make appropriate refunds, the details of which will be communicated prior to discontinuation.”
Qualcomm said it is “working to redeploy impacted employees,” but that some layoffs are likely.
The company added that it has been holding talks with “a wide range of parties” on both the network and the spectrum on which the service operates. “We are seeing strong interest in using the FLO TV network or spectrum to capitalize on the growing imbalance between mobile data supply and demand, the growth of tablets, and consumer demand for high quality video and print content, and a richer user experience,” the company said.
QCOM is up 43 cents, or 1%, to $44.32.
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