Qualcomm (NASDAQ:QCOM) has reportedly agreed to sell its UK L-band spectrum to Vodafone (LSE:VOD) and Three for more than £100m, a huge profit on the £8.3m the chip-maker paid in 2008.
The sale price, reported by The Times, would represent a more…
Qualcomm (NASDAQ:QCOM) has reportedly agreed to sell its UK L-band spectrum to Vodafone (LSE:VOD) and Three for more than £100m, a huge profit on the £8.3m the chip-maker paid in 2008.
The sale price, reported by The Times, would represent a more than 12-fold increase on what Qualcomm paid sector regulator Ofcom for the spectrum.
Ofcom would have to approve any transfer and, following a request from TelecomFinance, said: “At this point we have not received a spectrum trading application from Qualcomm.”
If it were to be presented with a spectrum transfer, Ofcom would take an initial two to three weeks to assess the proposal from a competition perspective. It could then choose to launch a more in-depth review if it had concerns.
Ofcom approved L-band spectrum to be used for supplemental downlink (SDL) services, which provide additional capacity for mobile broadband, in May. This followed a decision earlier this year by the European Commission to harmonise and mandate the spectrum for SDL use.
After winning the spectrum in an open competition in 2008, Qualcomm played a leading role in securing the approvals from the EC and Ofcom, investing in R&D to design chips suitable to work with the band.
Within weeks of Ofcom’s decision, Qualcomm announced it would sell its 40 MHz L-band licence, which is valid until 2023.
Boutique advisory firm Akira Partners ran the sale process for Qualcomm, The Times reported. Some bidders were reportedly interested in acquiring the entire 40 MHz, but Qualcomm believed it could maximise the value of the frequencies by selling them to two different buyers.
Qualcomm, Vodafone and Three declined to comment while Akira did not respond to a request for comment before the press deadline.
