Another thing that came up at the panel discussion was how much can be done over 3G in terms of improving the experience of mobile TV, for example with HSDPA.
The existing cellular solution is a unicast version, where each user gets a dedicated 3G-channel that is only allocated to them while they are watching their TV program. To give operators efficient use of the restricted number of cellular channels, there is also a broadcast version, Multimedia Broadcast and Multicast Services (MBMS), through which all viewers watching the same TV program share the same cellular channel.
Orange in France is a good example of an operator that has been very successful with mobile TV over 3G. It offers 54 TV channels. The company’s latest report shows very positive user figures for mobile TV, with an average usage per month of about 37 minutes per subscriber. And at least 50 percent of the customers are 3G users.
Another big issue was the business model for mobile TV, especially for mobile broadcast services. Zoller notes that the introduction of a new network – the mobile broadcast network, essentially creates a new role in the value chain – that of the mobile broadcast service provider. That role includes managing the customer relationship, defining the service mix such as pricing and packaging; managing the service platform, third party relationships and revenue settlement.
"What is not clear at this point is who will be the mobile broadcast service provider,” Zoller says. "It could be a mobile operator, broadcaster or a consortium containing both. Examples of operators aiming to occupy the central role include Orange France and 3 in Italy – 3 have even acquired a broadcaster in this market. An alternative model that could be attractive is a wholesale proposition of the type being offered by BT Movio in the UK and MediaFLO in the US."
Hendrik Bergstén