Ovum: O2 Trials TV Broadcast to Mobile Phones

John Delaney at Ovum comments on O2, Nokia and several broadcasters teaming up for the UK's first trial of multi-channel mobile TV. The service is based on the new DVB-H (Digital Video Broadcasting - Handheld) standard and works by beaming a signal to a digital TV receiver in Nokia's new 7710 handset. The trial will run for up to six months. O2 customers taking part in the trial will not pay to watch the TV element of the trial, although all their voice and data calls will be charged under their existing tariff plans.

Delaney notes that although mobie TV and 3G seems to be a "match made in heaven" for everyone involved, there are still a couple of big snags. The first is technology related and the second deals with that all important factor, customers.

Delaney notes 3G is "designed for point-to-point traffic, not broadcasting, which uses valuable cellular spectrum very inefficiently." Even though the O2 trial is using DVB-H to address this issue, radio spectrum "has not yet been allocated in the UK; and very few phones are currently compatible with DVB-H."

More importantly is the customer issue. As Delaney rightfully observes, even if O2 customers enjoy the free mobile TV trial, it:

won't tell O2 whether or not people like mobile TV enough to buy an expensive new phone that can receive it, and to pay regularly to watch it. The triallists will be given their phones and will be watching TV for free. Equipment vendors are citing "willingness to pay" surveys to show that people will pay up to 10 euros a month for mobile TV, but we generally view such surveys sceptically. It's one thing to say that you're willing to pay; it's quite another thing actually to pay.

Have to agree with Delaney on this. The carriers can assume all they want based on these "surveys" but until money has to change hands for mobile TV services then all bets are off...