Qualcomm to Sell UK L-Band Spectrum to Vodafone and H3G; Terms Not Disclosed

Qualcomm Incorporated (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.