US wireless chip designer Qualcomm is set to switch off its Flo TV mobile TV business, after failing to sell the unit over the summer.
In a statement, the firm has said it was planning on suspending new direct to consumer sales of service and devices…
US wireless chip designer Qualcomm is set to switch off its Flo TV mobile TV business, after failing to sell the unit over the summer.
In a statement, the firm has said it was planning on suspending new direct to consumer sales of service and devices immediately, and has committed to maintaining service for existing D2C customers only until spring 2011. The firm said that it would offer refunds to users “in the event of a discontinuance of service”, suggesting that this is the probable outcome, and conceded that it was expecting to have to make “some layoffs”.
Qualcomm has been upset with the commercial performance of Flo TV for some time. In late June this year, Flo TV president Bill Stone said he was “not happy with the current subscriber numbers. They’re not where they need to be.” He added that the firm was seeking overseas deployments of the technology and that its ongoing operation in the US was dependent on a degree of international success. Trials have been undertaken with British satellite TV broadcaster BSkyB and Japanese carrier KDDI but there have been no indications as yet that they could result in commercial services.