There are more than 50 operators around the world with ongoing mobile TV activities. Vodafone Germany was one of Europe's first operators to launch a mobile TV service at the end of 2004. By June, around 24 percent of its 3G users were tuning in.
Ericsson marketing manager Thomas Johansen says merging the mobile phone with television goes hand in hand. "The concept of mobile TV is really easy for a wide range of consumers to grasp. People watch television at home and, with the continued need for mobility, users can clearly see the benefits of mobile TV."
Research shows that consumers rank mobile TV as one of the top 3G services Along with such basics as voice calls, text messages and playing games, mobile TV functions as an entertaining pastime and useful tool.
"Mobile TV will be used in both an emotional and rational way. For a number of users it's just going to be a fun way to fill their time, a sort of micro-moment to enjoy," Johansen says. "But for others, it will help them to stay updated and be more efficient with their time."
News, sport and entertainment, in the form of soaps or reality TV, are the preferred types of content for consumers who want to watch the same brand of programs on their mobile TV as they watch at home. Johansen says this is one of the main challenges for operators.
"To make the service attractive, the channels or content need to be recognizable. Operators are well aware that they need to get broadcasters and media companies on board if they are going to launch mobile TV."
Additionally, operators must consider both global and local television content to cater for wide-ranging consumer choice. As well as tuning into services from international broadcasters users should also be able to switch over to their favorite domestic TV channel. Enriching the end-user experience also requires a user-friendly approach to mobile TV. Research shows that consumers desire an easy-to-use design concept to encourage them to tune in. This has become a main focus point for solutions suppliers where Ericsson works closely with Sony Ericsson on the handset side and also conducts its own consumer behavior research.
Mobile TV services can either be delivered to users live or on demand and the coming element of interactivity will add extra value to mobile TV.
"Interactivity will allow users to download the theme tune of their favorite program as a ringtone or vote instantly while they are watching a reality show. With mobile TV, you can get to the consumer around the clock."
Consequently, mobile TV is an ideal platform for advertising, which consumers would embrace if it resulted in cheaper services.
"It's about finding the right balance between too much advertising, which becomes frustrating, and too little, which doesn't create enough revenue," Johansen says.
Indeed, price structure is another important factor for operators if mobile TV is to reach the mass market. Research shows that consumers are most attracted to a subscription-based service where a flat monthly fee offers unlimited usage. Around EUR 8-12 per month is an acceptable figure in most markets.
"Pay-per-view didn't take off in the TV world and if users have to pay every time they tune in they will have to evaluate the worth of mobile TV. Therefore they will be less inclined to watch," says Johansen.
People are unlikely to replace their home viewing habits with mobile TV. But in the future the mobile phone is set to add another function to its growing repertoire, becoming a remote control on the run with television on the move.