Qualcomm Incorporated (NASDAQ: QCOM) today announced that its wholly-owned subsidiary, Qualcomm UK Spectrum (QUKS), has agreed to sell the entirety of its UK L-Band spectrum (1452 – 1492 MHz) in two separate transactions. Under a transaction between QUKS and Vodafone UK (Vodafone), Vodafone agreed to purchase 20 MHz of the spectrum. Under a separate transaction between QUKS and Hutchinson 3G UK Limited (H3G), H3G has agreed to purchase 20 MHz of the spectrum.
Harmonized and mandated for mobile broadband by the European Union in May 2015, L-Band spectrum can be used for Supplemental Downlink (SDL), helping Mobile Network Operators to meet the global demand for increased mobile data traffic.
SDL can help meet the demand for more downlink centric services, such as video on-demand, to be delivered seamlessly to mobile devices over a cellular data connection, even as data traffic levels continue to increase. It also delivers increases in downlink user experience through aggregation with licensed Frequency-Division Duplexing (FDD) spectrum.
Both sales are subject to regulatory approval and other customary closing conditions. Both QUKS and Vodafone and H3G will shortly submit respective applications to transfer the spectrum for UK communications regulator Ofcom approval. Details of the terms of the sales are not disclosed.
Akira Partners LLP acted as Qualcomm Incorporated’s exclusive financial advisor on the transaction.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. Any statements contained herein which do not describe historical facts, including but not limited to statements regarding: the proposed transaction between QUKS and Vodafone; the proposed transaction between QUKS and H3G; the expected use of the L-Band spectrum for Supplemental Downlink; strategic and other potential benefits of the transactions; and any other statements about future expectations, beliefs, goals, plans, or prospects, are forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. Such risks and uncertainties include: the possibility that certain closing conditions to the transactions will not be satisfied; that required regulatory approvals for the transactions may not be obtained in a timely manner, if at all; the ability to timely consummate the transactions and possibility that one or both of the transactions will not be completed; the anticipated benefits of the transactions may not be realized; and those additional factors discussed in Qualcomm’s most recent Quarterly and Annual Reports on Forms 10-Q and 10-K filed with the Securities and Exchange Commission. Investors are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Qualcomm undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.
About Qualcomm Incorporated
Qualcomm Incorporated (NASDAQ: QCOM) is a world leader in 3G, 4G and next-generation wireless technologies. Qualcomm Incorporated includes Qualcomm’s licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm’s engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT, and its IoE businesses. For more than 30 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit Qualcomm’s website,OnQ blog, Twitter and Facebook pages.