Thursday, June 29, 2006

Analysys: Many mobile TV broadcasting options will not be financially viable

A new report from Analysys finds that "despite high expectations for mobile TV and radio services, only a small number of broadcasting technology options will be financially viable."

Dr Alastair Brydon at Analysys said, “There is a strong chance that mobile users will not spend a substantial amount on mobile TV and radio services, or video-on-demand and other mobile broadcasting services.”

According to Brydon, “Sharing a broadcasting network with a number of other mobile operators will be essential. With a shared network, either DAB-IP or DVB-H could yield attractive returns." He noted that "while DAB-IP is potentially the cheapest solution, it is only appropriate in those few markets where DAB has been deployed extensively. Furthermore, only a limited range of DAB handsets and broadcast channels may be available. DVB-H is currently attracting the most interest from mobile operators in Western Europe and is the most likely to achieve significant economies of scale on both infrastructure and handsets."

Dr Mark Heath at Analysys said, “While a shared DAB-IP or DVB-H network could provide a strong financial return for a large operator, some may want their own broadcasting networks, to differentiate themselves from competitors."

Heath added, “TDtv would allow mobile operators to reuse existing cellular base stations and operate in already-licensed TDD (Time Division Duplex) spectrum, making it considerably cheaper. While DVB-H is also viable, operators must try to avoid high spectrum costs and the use of the more expensive L-band spectrum, which would require significantly higher take-up and revenue per service user to achieve a good return.”