Mobile TV: Fact or Fiction?

Global

ShoesteckGroup. Everyone has a mobile phone and everyone watches TV. So does it make sense that everyone will want to watch TV on their mobile phone? There has been tremendous hype around this subject in the last six months – mainly from vendors such as Nokia, Samsung and Qualcomm, each promoting different technology standards: DVB-H, DMB and FLO,respectively . Some cellular operators have added to the hype too, but for different reasons. They have been more focused on talking-up the multimedia capabilities of their recently established 3G networks – but inevitably, talk of watching video clips on mobile phones tends to get interpreted as “mobile TV.

Cellular networks today deliver content “on-demand,” on a point-to-point or unicast basis, successfully satisfying the increasing demand from consumers for entertainment NOW – anytime, anyplace. These new wireless networks will operate on a point-to-multipoint orbroadcast basis. The nature of broadcast will mean users may get content wherever they are but NOT whenever they want.They will still be restricted to broadcast schedules. These non-cellular technologies promise frame rates of 25 frames per second compared to 15 frames per second or less on current cellular networks, thanks to typically higher per user data rates. In reality, this difference, although perceptible, is not significant. There will be few, if any, differences in quality affecting device capabilities too. The benefits of advances in displays, processor and memory technologies will be shared by each of these service propositions.The only real issue may be power consumption, and its impact on battery life, but even this thornyIt may be an issue of appropriate content. After all, content is king.

The mobile broadcast TV service proposition will live or die by the nature, mix, and breadth of the content it offers. It may be an issue of real-time, “live” content. Proponents of mobile broadcast TV claim that “live is the killer app. Keeping abreast of breaking news, watching live sports action, or just watching TV shows when everyone else can, will be key motivators for use of mobile broadcast TV services. But this is possible with cellular too – many of the current “mobile TV” services offer relatively up-to-date content, including regularly refreshed news, and in some cases “live” simulcast of terrestrial TV streamed over circuit or packet switched connections. It may be an issue of “killing time.” The motivator for usage of many current mobile multimedia services – music, games and video, is to avoid boredom in periods of inactivity, while commuting for example. Broadcast TV will satisfy this requirement too, although enabling users to “channel hop” in real-time may give it an edge. It may be an issue of interactivity. Combining broadcast TV with real-time feedback mechanisms or on-line shopping via the cellular network, promises to provide a more compelling, enjoyable and fulfilling user experience. The answer is that it won’t be because of quality, appropriate content, whether “live” or not, or INteractivity.

As always it willbe because of price, It is possible that broadcast TV services could bepriced low enough to encourage users to commit to a monthlysubscription. Consensus favors the subscription,pay-TV model in most countries. Prices must below enough not to discourage usage of communications services (thebread and butter of cellular operators). But whether revenues aregenerated from subscriptions, pay-per-use or from advertising, thecritical factor for the broadcast business case is user volume. The key question is therefore: will broadcast TV be a mass marketphenomenon? How much of this ‘interest’ will be translated into real demand?.

The time is fast approaching when all the participants in the value chain - vendors, cellular operators, broadcasters and content providers – must take a leap of faith and invest in this nascent market, if it is to succeed at all. Mobile TV: fact of fiction Publ 20050517 Mobile video? Answers, Ericsson White paper Red Viking