Friday, March 24, 2006

Pyramid Research: A Case for Mobile TV without the Mobile Operator

According to a new report from Pyramid Research, "one of the key risks mobile network operators (MNOs) face with Mobile TV [is] becoming casualties of a dis-intermediation process that would minimize their role in the Mobile TV value chain or remove them altogether. MNOs missed the mobile music boat; clumsiness towards Mobile TV could have a more negative impact."

Nick Holland at Pyramid Research said, “With Mobile TV, MNOs have a 12-18 month window of opportunity, an advantage they better not squander with inadequate pricing and quality of service."

Pyramid points out that while "MNOs provide the fastest route to market since they have a large subscriber base that demonstrates an affinity for portable electronic products," Broadcast Mobile TV "does not require the operator’s cellular network to work."

Holland concludes, “MNOs must solidify their position in the mobile TV value chain before their role becomes minimized. They will have the main mobile video offerings in the marketplace for another year or two, just as 3G starts reaching some level of maturity. The more they build video watching patterns around the handset, the less vulnerable their position in the value chain will be.”