Qualcomm Sells AT&T Extra Spectrum to Push Out 4G LTE Data Coverage

From DailyTech: AT&T reports that it has just completed a deal to provide what will be a crucial component of its 4G bid. It will purchase a portion of the lower 700 MHz spectrum formerly occupied by Qualcomm's FLO TV service. The spectrum will beef of AT&T's existing 700 MHz holdings. The new spectrum will offer coverage of 300 million Americans, and come at a pretty penny for AT&T -- $1.925B USD.

Sprint was the first U.S. carrier to deploy a true 4G network, with its ever-expanding WiMAX network. It remains the only network to offer true 4G smart phones (rival T-Mobile offers pseudo-4G HSPA+ smart phones, a tech experts refer to as "3.5G").

However, the race is heating up, with Verizon formally announcing its first 4G network rollout, which will initially feature broadband cards, and then expanding to smart phones later in 2011. With Verizon -- the largest U.S. carrier -- pushing its new 4G LTE network, the pressure is on AT&T to follow in suit.

AT&T will also be relying on the LTE technology, a crucial shift from the 3G generation, in which Verizon adopted CDMA and AT&T adopted the rival GSM technology. AT&T, like Verizon, hopes to have 4G devices out in 2011, but has been less specific about its plans.

Independent tests have shown that the company has long held an edge over Verizon in the service quality and speeds of its data network. However, if it does not act quickly, Verizon's shiny 4G powers may allow it to boot AT&T to second place. That would be a major problem for AT&T, given that it's used its data network prowess as a key selling point to customers.

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