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The fact that most popular mobile devices will not support a FLO tuner is indeed the factor why FLO TV needs to close shop. However it does not really affect AT&T and Verizon, the two providers as they already have streaming mobile tV ( both as OTT and over 3G) to replace FLO TV.
However we may be missing a point here. The largest change in Mobile Video in 2011 is going to be TV over the internet. This is enabled by three technologies, all of which have an origin in 2010- the Apple HLS ( now part of iOS3.0), Microsoft Silverlight ( Windows 7.0 mobile) and Google WebM streaming( Android). These can deliver streaming video effectively to all mobile devices without any other proprietary software or need for operator subscriptions. All these will have a major impact on the Mobile TV models such as those of MobiTV.
Sell it to Phil Harvey? He was enamoured with Flo TV at one point, IIRC. He could attach an outboard motor and get it moving.