mobile TV expectations
range of sub-$200 devices. much coverage is the right level
Currently MNOs can only attract of coverage?’. “As the majority of
subscribers to mobile TV services mobile TV is predicted to be
through high-end handsets — watched inside buildings, indoor
typically costing US$500 to coverage becomes a significant
$1200. These expensive devices issue,” he says. “Network design
represent only a small percentage is heavily influenced by the
of the accessible mobile phone reception environment. The
market. If enabled handsets were commercial challenge lies in
available in every price bracket, finding the right balance between
however, then a massive part of a high quality of service, the right
the established mobile phone level of coverage, and the extent
market could be opened up to of infrastructure deployed.”
mobile TV. “You can launch mobile TV
“The sub-$200 price point is with less than 90% indoor
particularly important, because it coverage, but subscribers will
appears that the early movers will soon expect mobile TV reception
be in developing countries,” says to be equal to mobile phone
Ridgway. “Some African and coverage,” says Ridgway. “Users
Asian markets are leading the are not likely to differentiate
way with launch-planning, but to between the diverse technologies
succeed they desperately need the that allow them to communicate
support of device vendors.” and watch TV from the same
“There has been an device.”
understandable reluctance by the Revenue stream is another
manufacturers to produce more
Wipro Technologies Mobile TV Business Development Manager, Brian
factor to consider, with
mobile-TV-enabled devices before
Ridgway
subscription and advertising-
the networks and services are based models both in the mix.
available,” says Jaeger. “But it’s over the regulatory environment. a regulator’s primary According to Jaeger, a hybrid
not all bad news. Technological Individual countries have responsibility is to serve the free/subscription offering is likely
advancements are allowing the different ways of licensing interests of its country and to be successful, together with
necessary functionality to be content and infrastructure, with citizens, and not those of some clever bundling of
incorporated into handsets more varying requirements involving operators and vendors. However, complementary services.
cheaply, and we believe that a frequency, broadcast and media if the spectrum, technology, “Whatever happens you need
wider variety of lower-cost licences. investors and market are all to get the price-point right,”
devices will begin to enter the “In many countries, it is ready, then surely—in the interests Ridgway adds. “We are talking
market on lower-volume simply taking time to establish of economic and technical Big Mac economics here, with
production runs.” the necessary regulatory development—the time is right to monthly charges varying from
“We can talk about business frameworks,” says Jaeger. award licences?” one country to another, in the
models and content, but without “Governments need to recognise same way that McDonalds varies
the devices available, a service that these mobile television Business model basics its prices from market to market.”
will never attract the number of services are a good thing for their While such factors play an In Jaeger’s view mobile TV
subscribers needed to make it country, and demonstrate a important part in the foundations success all comes down to ‘the
successful,” adds Ridgway. “Users willingness to allocate spectrum needed for a successful mobile TV four Cs’ — coverage, content,
tend not to buy a device with a in a way that doesn’t just demand launch, they do not undermine convenience and cost. “The
service in mind; they are more a price premium. Given the the relevance or significance of importance of these elements
inclined to buy the handset they diverse ways that licensing issues the business model itself. cannot be overstated when
like, and then expect the range of are handled in different countries, Organisations are showing preparing for a new mobile TV
services to come with it. For it’s helpful to have the right themselves reluctant to make service,” he says.
mobile TV to be successful, regulatory arrangement that large investments until a model is “We have seen the technology
therefore, there needs to be more doesn’t complicate the business proven — in particular, it will be proven and the demand is there.
choice of devices across a broad by being beholden to too many important to get the partnering Consumers are ready for the right
range of price brackets.” licensing bodies.” aspects right, recognising the offering. In the long run, the
“One of the frustrations in roles played by MNOs, exact model will likely prove to
Licence to thrill global progress is that the broadcasters, handset be different in different countries,
Even though passion and passionate innovative operators manufacturers, digital network depending on regulatory
commitment from the service are out there and ready to launch, specialists and content providers environment and a host of other
provider and an adequate range but they’ve met significant delays respectively. issues; but, so long as the four Cs
of handsets will help attract on the regulatory front — and by Jaeger believes that one key are adequately addressed, mobile
subscribers to mobile TV, the significant, we’re talking years!” element of the business model is TV can and will live up to
service provider has little control says Ridgway. “I understand that posed by the question, ‘How expectation.”
content2mobile 4 september 2009
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