Qualcomm's MediaFLO A Money Pit?

Qualcomm recently filed a statement with the SEC detailing the investments on MediaFLO for 2007. MediaFLO is the digital TV broadcast technology that Qualcomm backs, competing with Nokia’s DVB-H and other standards. MediaFLO lost out in Europe, but already has Verizon Wireless on board in the U.S., with AT&T to follow suit shortly this year.

According to the report, Qualcomm’s QSI segment, which includes MediaFLO, lost a whopping $240 million smackers in 2007, nearly double the $133 million they lost in 2006. Looks like they sunk $70 million of the losses into ‘cost of services revenues related to the commencement of services’ and $42 million increase in selling, general, and administrative expenses. The whopper, though, is a supposed $20 million bucks related to ‘cooperative marketing expenses.’ They must have had some massive mis-directed marketing then, because I live in a MediaFLO-covered area, and I didn’t see much of anything promoting Verizon’s V Cast TV, aside from the vinyl banners stretched across the storefront. I really, REALLY hope they didn’t drop $20 million on those banners.

In any case, it’s not the best assurance that Mobile TV is going to be big if it’s bleeding money like this. Perhaps having both of the United States’ biggest carriers on board will make a change? Guess we’ll find out in the next 6 months or so.