Qualcomm May Be Stung By Delay In Digital TV Transition

Qualcomm could be one of the big losers if lawmakers succeed in delaying the move to digital television signals from analog transmissions. A delay would be costly to Qualcomm, which has invested hundreds of millions of dollars in equipment and wireless licenses. MediaFLO, while available on Verizon Wireless and AT&T services, has struggled to add customers. The limited availability is one reason Qualcomm believes the service has received little marketing support from the carriers and, thus, sparse interest from consumers. The biggest expense comes from fees Qualcomm is paying to broadcasters to vacate the analog signals early, allowing them to operate in those regions. The fees were supposed to stop once the transition occurs, but if it gets pushed back to June, Qualcomm has to keep paying them out. It's the biggest expense, which Lauer described as "tens of millions of dollars."