Reiter's Mobile TV Report

BusinessWeek discusses competing mobile TV standards

BusinessWeek has published an article about the major mobile television protocols:  European Commission-promoted DVB-H, Qualcomm’s MediaFLO and South Korea-promoted DMB (Digital Multimedia Broadcasting).

It’s mostly an overview of the state of those protocols.  The most interesting aspect might be reporting about spectrum issues and whether an alternative protocol could succeed in Europe rather than the EC-pushed DVB-H.

There isn’t any available mobile TV spectrum in South Korea, but the Koreans are touting their protocol, DMB, as suitable for Europe, the article says.  S.H. Kim, the director of a promotion team for information technologies under Korea's Ministry of Information and Communications, says, “We do not think this [EC] decision to support DVB-H will be easily implemented in the European market because all of the countries have different regulations and different spectrum.”

Kim notes there is a successful commercial DMB service in Germany and trials in the Netherlands, Britain, Italy and Norway, BusinessWeek says.

Lack of spectrum — opportunities?

BusinessWeek says the lack of spectrum for DVB-H in some European countries might help foster implementing other protocols, such as even WiMAX.  (The article doesn’t discuss it, but Sprint is likely to offer mobile TV over its future WiMAX network.)

The article notes that DVB-H channels might not be available in the U.K. until 2012, and another one or two years might be required before commercial service was implemented.  London will host the Summer Olympics in 2012 (despite the rather controversial jigsaw logo! see left) but cellular operators might not be able to offer DVB-H mobile TV in time for the event, BusinessWeek points out.

(That’s not say that U.K. operators wouldn’t be able to offer any Olympics programs.  As I’ve written many times, all the major operators already offer 3G-based mobile TV and it’s a slam dunk that regardless of the protocol(s) a huge number of mobile TV programs — as well as other wireless information — will be offered.)

For the past few years, countries hosting major sporting events have rushed to implement the most advanced mobile TV systems.  As BusinessWeek notes, the Chinese certainly hope to offer mobile TV when Beijing hosts the Olympics next year, although there has been a great deal of confusion and controversy about using a homegrown Chinese mobile TV protocol versus more common protocols.

U.K.'s Virgin Mobile, BT Movio kill mobile TV service because of poor response

Virgin Mobile, the well known mobile virtual network operator (MVNO) in the U.K., is ending its mobile television business and its mobile TV platform partner, BT Movio, is closing its operation, according to an article in The Guardian.  The Guardian had reported that fewer than 10,000 people had subscribed to Virgin’s mobile TV service.

In addition, BT Movio — that had hoped to expand its mobile TV business to other European countries — has canceled its contract with GCap Media, the company that owns the mobile TV spectrum.  The mobile TV service could be ended early in 2008, according to the article.

So is this the end of mobile TV in Europe?  Hardly.  Certainly it isn’t good news, but it’s just the end of one service, and mobile TV will continue to expand on other technology platforms.

Why the end?

The Guardian discusses a few reasons why Virgin’s mobile TV service failed.  One reason is the MVNO offered only one mobile TV phone — and a large one at that.  Its name was as ungainly, apparently, as the phone:  The Lobster 700TV (see left).

Also, the European Commission recently endorsed the Nokia-backed DVB-H standard — that isn’t used by Virgin Mobile.  Virgin uses DAB (Digital Audio Broadcasting), in great part because the spectrum was available in the U.K.  Spectrum for DVB-H isn’t yet available in the country.

Cellular operators hope to be able to use spectrum that is currently used for analogue broadcast television, but is scheduled to be available in a few years when only digital TV will be allowed (see below). 

(Television spectrum in the United States, 700 MHz, also is slated to be auctioned and there has been a huge amount of controversy over the proposed licensing requirements and interest by Google.)

3G spectrum now, TV spectrum later

As The Guardian notes, and as I’ve certainly written about, U.K. cellular operators already offer a variety of mobile TV services via their regular 3G channels.  The article says, “Companies such as Vodafone, 3 and Orange have been using their existing 3G mobile networks to transmit video to individual handsets.

“Ultimately, however, the industry wants to broadcast a pared-down version of traditional TV through one nationwide network that any handset with the right kit can access.  Such a service would be much cheaper to offer than streaming TV over existing mobile phone networks.”

Unrealistic expectations

Bruce Renny, the marketing director at the mobile TV content company ROK Entertainment Group, says the wireless industry’s expectations of mobile TV sales were too optimistic and the death of Virgin’s mobile TV is a reflection of that.

Renny says, “After all, why pay a subscription fee to receive the same TV content on your mobile that you already get at home?  Particularly when people don't watch TV on mobiles for more than a few minutes at a time.

"Most mobile TV viewing is for just a few minutes.  To be commercially successful, you have to provide a combination of live news, sports updates and video-on-demand made-for-mobile content which is instantly engaging.

“Simply broadcasting linear TV to mobiles is not the answer.”

Renny’s comments

I agree — in part — with Renny’s comments.  Yes, many people watch mobile TV for just a few minutes.  And, yes, I believe success will be dependent upon offering a variety of programs.

However, I also believe that mobile TV’s success will require a combination of short, on-demand videos and longer programs, such as live streaming offerings.  Verizon Wireless, for example, offers both on-demand short video clips as well as its live, streaming V CAST Mobile TV service — and I think that’s a better mix of options than one or the other.

One of the reasons cellular subscribers often prefer shorter videos is the screen is small and the resolution is poor so the viewing experience is poor.  That could change if subscribers begin to demand handsets with larger, higher resolutions screens rather than usually picking the smallest or cheapest phones.

As I’ve written, the Apple iPhone with its 3.5–inch higher resolution screen makes viewing downloaded videos, TV programs and movies via iTunes (no over-the-air mobile TV offered, though) a dramatically better experience than with typical phone LCDs.

Paying once, twice, thrice

As for not wanting to pay for the same programs you can watch for “free” on mobile TV, well, people in the U.K. pay for cable TV and they also have to pay a yearly government TV fee for a color television (135.50 pounds/$275.31).  Furthermore, people pay for lots of the same or similar services on cellular.

For example, many cellular users pay for e-mail services even though they get free e-mail access at work and “free” e-mail at home (for which they also have to pay through a landline or broadband connection).

Philippines' Smart Communications launches DVB-H mobile TV , free until September

Philippines cellular operator Smart Communications, in conjunction with content aggregator 360Media Corp., have launched the country’s first mobile television service using the DVB-H protocol, according to AHN.

The service, called myTV, will be free through August 2007 and thereafter cost R488 ($10.80) per month extra for prepaid and contract customers.  Smart Communications’ press release says channels include CNN, MTV Philippines, Cartoon Network, National Geographic, The History Channel, the Pinoy Box Office movie channel.

Four channels will be tested:  Solar Sports, Basketball TV, ECT, Jack TV.  In addition, myTV will offer live games of PBA (Philippine Basketball Association) teams.

Smart is selling Nokia’s N92 phone for mobile TV that can be used as a flip phone or in a clamshell configuration (see below).  The cellular operator also will sell Nokia’s N77 candybar phone.

Update: July 31 — An article in ZDNet Asia says Smart hopes to obtain 60,000 – 70,000 mobile TV subscribers within a couple of months. 

Smart’s cellular rival, Globe Telecom, says it’s still developing its mobile TV plans and won’t discuss them in public.

An article in the Manila Bulletin says myTV doesn’t yet include any local channels but 360Media is negotiating with Philippines TV stations ABS-CBN and GMA-7.  The head of Smart’s wireless consumer division says in the article that the cellular operator plans to offer a device that would enable non-DVB-H handsets to receive myTV.

Ghana Telecom demos T-DMB mobile TV in preparation for October launch

Ghana Telecom, in conjunction with Black Star TV, has begun demonstrating mobile television using T-DMB (Terrestrial – Digital Multimedia Broadcasting) as a teaser for when its commercial service is slated to launch in October 2007 over its Onetouch cellular network, according to a company press release.

Six TV channels, four radio channels and two data channels are slated to be available at launch, the release says.  Accra and Ashanti will be the first two markets, followed by a nationwide rollout, the company says.

Ghana Telecom has approximately 1 million subscribers for a 19 percent market share in the country.

The Vatican tests T-DMB mobile TV in preparation for commercial launch

The Vatican in late July began testing the T-DMB (Terrestrial – Digital Multimedia Broadcasting) mobile TV protocol in preparation for a commercial launch in the future, according to an article from The Korea Times.

South Korea is aggressively promoting its T-DMB protocol for adoption around the world.  The article reports, “Korea has gone all-out to encourage the Vatican to adopt T-DMB.  President Roh Moo-hyun presented 100 T-DMB-enabled terminals in February when he visited the world's smallest independent nation.”

Korea promotes T-DMB as being able to operate on a variety of different broadcast channels compared to DVB-H where many European countries, for example, don’t have available spectrum.  T-DMB also is promoted as being much less expensive to implement than DVB-H.

RAI’s T-DMB network

The Italian broadcaster RAI International has selected T-DMB.  Stefano Ciccotti, the CEO of RAIWay, a networking subsidiary of RAI, says in the article that a nationwide DVB-H network would cost $414 million in Italy compared to $11 million for T-DMB.

RAI is slated to begin offering T-DMB in August 2007 and expand coverage to more than half of the country later in the year.

Juniper Research says China's 2008 mobile TV revenues to rise to $98 million

Juniper Research says China’s mobile television business will increase from $36 million in revenues with 3.7 million subscribers in 2007 to $98 million in revenues with 9.3 million subscribers in 2008, according to the company’s press release.

The huge increase will result in large part from the Olympics in Beijing in 2008, Juniper says.

A jump in viewers during the Olympics wouldn’t be a surprise.  Indeed, it’s expected.  Major sporting events — Olympics, the World Cup, etc. — have generated increases in mobile TV subscribers and have sparked cellular operators to implement new mobile TV networks or enhance existing systems in advance of the events.

However, China is going to have to get its act together regarding mobile TV protocols because of the continuing controversy over implementing a homegrown standard that doesn’t appear to be ready versus other standards that are ready.  Regardless of what protocol or protocols is/are permitted, Chinese cellular operators certainly are going to have to rush to get mobile TV operating smoothly in time for the Olympics.

China’s wireless content

In early June Juniper predicted revenues from wireless value-added services in China would increase from $15 billion in 2008 to $21 billion in 2012.  The increase would be aided by the launch of 3G services, the market research company says.

Juniper says current wireless content revenues are generated primarily from SMS and ringtones but the rollout of 3G will spark the growth of music, games and streaming videos.  By 2012, 3G content could represent 19 percent of the total value-added services.

European Commission endorses Nokia-backed DVB-H; EC report, FAQs

The European Commission (EC) has endorsed the DVB-H mobile television protocol that has been backed by Nokia as well as being backed by the EC with millions of dollars (well, euros) for research and development.

PublicTechnology.net has published an EC background briefing (FAQs) about mobile television and its policies.  In addition, the EC has published a mobile TV report, “Strengthening the Internal Market for Mobile TV” (see below), that’s available on the EC’s Web site.

Australian Broadcasting Corp. reports on Telstra's BigPond mobile TV

The Australian Broadcasting Corp. (ABC) reports (including audio) on Australian cellular operator Telstra's new BigPond mobile TV service (see below).

The programs are transmitted over Telstra’s 3G network and, from what I’ve read, it doesn’t seem that Australians will be getting a dedicated broadcast mobile TV network (DVB-H, MediaFLO, DMB, etc.) in the foreseeable future because no spectrum has been allocated.  The other major Australian cellular operators already offer on-demand video clips.

BigPond offers on-demand clips of programs, full-length episodes from four programs (South Park, The Shield, Rescue Me and Dora the Explorer) and two programs specifically produced for cellular.

Pricing

The programs range from $.50 AUS ($.42 U.S.) to $4.95 AUS ($4.23 U.S), plus other costs, and there is no flat rate monthly pricing plan for unlimited viewing. 

In the United States we often complain about pricing, but cellular operators often offer flat rate plans for services — ranging from mobile TV to e-mail — that subscribers in many other countries, who have to pay metered rates — would kill for.

AT&T/Cingular, Sprint and Verizon Wireless offer flat rate monthly packages for their mobile TV offerings and many of those packages include full-length (and sometimes live) programs.

Testing the waters

THE ABC report emphasizes mobile TV is in its infancy and many players aren’t sure exactly what to expect, although Telstra certainly hopes the service will be profitable eventually. 

Justin Milne, the managing director of BigPond, says, “We are inventing a new medium here and what I earnestly hope is that by giving them some slots and making them available to Australian producers to help us invent this whole short form of TV, that the folks will vote with their feet and they'll buy those shows, and those will become the most popular shows and so we'll produce more of them. That's what I hope.”

I’ve written many times before that I believe the future of mobile TV is on-demand and live programs.  Without the ability to watch live programs — especially news and sports — “mobile TV” isn’t true mobile TV.

Indonesia telecom firm PT Agis Tbk to use DMB for mobile TV service

The Indonesian conglomerate PT Agis Tbk in Jakarta will offer mobile television in Indonesia via the DMB (Digital Multimedia Broadcasting) protocol, according to the press release in Cellular-News.

Agis will work with BNS, a television systems integrator, and Toshiba to develop the system that’s slated to be commercially available early in 2008.

The press release says, “Unlike cellular based 3G streaming, DMB does not require extensive telco infrastructure and can scale as easily as a TV broadcast.  And unlike other mobile TV technologies based on precious UHF frequencies, DMB can be operated on many nationwide or region-wide frequencies currently vacant and assigned by the ITU for DMB.

“This means DMB can cover Indonesia's over 200 regions with one frequency, allowing subscribers to watch the same programs anywhere in the country, and in the future, throughout the Asia Pacific region.”  DMB mobile TV systems are operating in Japan, South Korea and Germany.