Mobile TV : Smart and Strategic

Amid the industry excitement inspired by mobile TV, it pays to take a step
back and put everything in perspective. Certainly there is huge market
potential, but the ultimate shape of the mobile TV enterprise is far from a
forgone conclusion. The ideal business model is still under debate, with
emphasis being placed on identifying the key players in the value chain. This
challenge is compounded by the sheer number of different mobile TV technologies
and network topologies under consideration across the world.

In the first instance, there needs to be a distinction between the two main
guises of video on handheld devices: that which is downloadable for viewing at
one's convenience (for example, video on demand or podcasts), and that which is
streaming content in real time ('mobile television'). Downloadable content by
its very nature is generally delivered to handheld devices via one-to-one (unicast)
connections such as 3G cellular or even the Internet. Streaming content on the
other hand can be delivered via either unicast or broadcast platforms
(one-to-many).

Mobile Advantage

Broadcast mobile TV delivery platforms offer a number of advantages for
high-demand/popular programs over 3G unicast. One of these is the utilization of
dedicated spectrum for broadcast services, which eliminates any impact (or
dependence) on 3G services. The greater sustainability of broadcast TV platforms
is well accepted, as is the superior video and audio quality that can be
delivered. The dedicated spectrum also means that mobile TV services can be
broadcast using 'more ideal' spectrum. UHF and VHF Band III frequencies offer
the best balance of coverage penetration, handset design, infrastructure costs,
and practicality. L-Band frequencies are also being utilised in some deployments
where UHF spectrum is scarce.

Four critical factors will be essential to the success of any new mobile TV service: content, convenience, coverage and cost

The choice of network topology for broadcast mobile TV is generally dependent
on how best to leverage existing infrastructure. Two leading architecture models
have emerged-the 'mobile network overlay', where existing mobile base station
infrastructure is employed, and a 'broadcast network overlay', where existing
broadcast transmission infrastructure is utilized. It is likely that a hybrid of
the two will result in most cases.

Another variable is the plethora of mobile TV standards and platforms
developed globally to combat issues of mobile device reception, battery life and
screen resolution. These include Digital Video Broadcasting-Handheld (DVB-H) and
its satellite hybrid variant (DVB-SH), Digital Multimedia Broadcast (DMB)
terrestrial and satellite, Media Forward Link Only (MediaFLO), Integrated
Services Digital Broadcasting (ISDB) '1seg', and additional standards in
development, particularly in China and the USA. There is little doubt that each
will provide a technically viable, high-quality broadcast television service to
mobile handsets; however, the winners will likely be those that gain mass market
traction first and 'pull through' significant handset volumes.

Consumer Proposition

However, technology choices are just one of a number of key factors that
will be critical to the long-term viability of mobile TV networks. The ideal
mobile TV business plan will also depend on the following inter-dependent
factors: getting the consumer proposition right; understanding the competitive
environment and identifying the value chain; plus strategic network deployment
and channels to market.

Arguably, the consumer proposition should be considered first, because
without it there is no business case for mobile TV. The good news is that
consumers are genuinely interested. Nevertheless, there are four critical
factors that will be essential to the success of any new mobile TV service.
These are becoming known as 'the four Cs' of mobile TV success: content,
convenience, coverage and, ultimately, cost.

Martin Farrimond, Broadcast Australia General Manager New Platforms

Given the plethora of entertainment options in today's environment, modern
consumers have short attention-spans. It will thus be imperative that mobile TV
content is compelling. This suggests the need for a rich mix of relevant local,
international and 'specific-to-mobile' content. Moreover, integration with other
services, such as 3G, to allow interactivity is likely to be a driver for user
take-up.

User convenience plays a significant role here as well. This is related
largely to handset performance (and appearance), but is also linked to the
quality of service (also referred to as quality of experience) and the extent of
coverage achieved by the mobile TV network. As they have come to expect
ubiquitous coverage for their 2G and 3G phones, mobile TV subscribers will
demand a perfect picture, everywhere, all the time. The quality of the picture
will be a function of many factors, some related to the design and functionality
of the handset, others related to the performance and design of the network
itself.

Consequently, the successful mobile TV network will achieve an appropriate
balance between a high quality of service, the right level of coverage, and the
amount of infrastructure deployed-essentially a balance between factors that
will dictate subscriber take-up, and those that will impact network cost.

The Value Chain

It is for good reason that mobile TV is being hailed as the herald of true
convergence. The realisation of a successful mobile TV service demands the
participation of a great many players and the establishment of a functional
working relationship. These multiple stakeholders need to collaborate to ensure
that content is delivered to the target audience and that revenue is collected
and distributed among all parties. Choosing the right partners in this
competitive environment and being clear about respective roles in the value
chain will be essential.

The mobile TV value chain can be broadly divided into three main 'links':
content provider, deliverer of the mobile TV service, and channel to market. The
latter role will, in many markets, be played by a cellular network operator,
since such companies already 'own' the customer through existing mobile 2G and
3G services. However, we may see in some markets other players with substantial
consumer market presences assume this role (for example, pay TV operators). This
entity therefore acquires, owns and manages the relationship with subscribers to
mobile TV services.

At the other end of the chain lies the content provider. Traditionally the
so-called 'broadcaster' has played the dual role of content provider and
deliverer. However, the landscape of digital television has shifted in recent
years. The industry has seen the emergence of a new wave of digital content
developers and re-packagers, in conjunction with a wider range of delivery
platforms such as cable, IP/Internet, and now mobile TV. Content provision is
now a business all of its own, frequently separate from delivery.

The mobile TV value chain : Choosing the right partners and being clear about respective roles will be essential

The middle link in the value chain, associated with delivery of the service,
can be made up of either one or a number of parties that take care of content
aggregation, multiplexing, spectrum licence, and transmission.

Smart Choices

Establishment of the broadcast transmission network is likely to involve
significant capital outlay. It will therefore be imperative to get
implementation right at the outset. This means understanding the strengths and
weaknesses of the different technology platforms and network architectures, and
making smart choices. These initial choices will radically drive the level of
network investment and influence long-term viability.

As with the evolution of cellular networks, identifying the key markets to
cover first with a mobile TV service will be important. Certainly, an
opportunity to de-risk deployment lies in phasing the service launch across
geographical areas. At the end of the day, any mobile TV network will be a
balance between establishment and operational costs, versus the price that is
acceptable to consumers. The key will be pacing investment to develop a revenue
stream, which can then be fed back into the network.

Martin Farrimond

The author is general manager, new platforms, Broadcast Australia

vadmail@cybermedia.co.in