[opendtv] Battles brew over European mobile TV

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 19 Jun 2007 12:03:28 -0400

It will be interesting to see whether this mobile TV-to-handhelds market
really materializes. I find this quote right on target:

"Vodafone, which prefers to stream TV content over its 3G networks, said
it doesn't see the need to use broadcast networks for mobile TV until
more people are using the service and causing mobile network congestion.

"Vodafone said the only place so far where it has experienced any
network overload is in Newbury in the U.K. - the company's headquarters
- where employees are trying out the service. 'If we see sufficient
[usage] peaks then we'll see the need to consider DVB-H,' said
Vodafone's Sarah Hancy. 'If we have big mass market take-up, then a
broadcast model might be the way to go.'"

It seems to me that if regular DTT is made available to portable
devices, even if not handheld cell phone type appliances, these
subscription DVB-H or other schemes would face stiff competition. But at
the power levels DTT has in Italy and the UK, it may not ever come to
that.

Bert

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Battles brew over European mobile TV

Michelle Donegan, European Editor, Unstrung
(06/19/2007 5:12 AM EDT)
URL: http://www.eetimes.com/showArticle.jhtml?articleID=199905359

LONDON - Mobile TV is becoming an emotional issue in Europe, with
carriers disputing each other's customer claims in Italy, and major
operators challenging European Commission proposals for the adoption of
DVB-H (Digital Video Broadcasting " Handheld) as the standard technical
platform for mobile TV service delivery.

Italians Squabble Over Subs Stats

In the biggest DVB-H mobile TV market in Europe, Italian mobile
operators can't agree on how many subscribers they have. Recently 3
Italia said it had more than 600,000 subscribers to its DVB-H service,
which it launched a year ago. But a Telecom Italia SpA executive has
questioned that number.

Gian Paolo Balboni, senior program manager for TV and multimedia at
Telecom Italia, said there are between 500,000 and 600,000 DVB-H
customers in the Italian market in total. "600,000 is the number of
phones [3 Italia] has delivered to its shops [not subscribers]. It's a
common trick we telcos use."

Telecom Italia Mobile launched mobile TV services over DVB-H in November
2006, said Balboni. A recent report in the newsletter Mobile Media said
that TIM only has 10,000 mobile TV customers. A TIM spokesman said that
number was incorrect but would not reveal the actual figure.

TIM, Vodafone Italy, and 3 Italia all offer mobile TV services over
DVB-H in Italy. TIM and Vodafone have wholesale agreements with
broadcaster Mediaset, while 3 Italia has its own DVB-H network, which it
developed after it acquired Channel 7 from the Profit Group in November
2005.

Vodafone also would not disclose mobile TV subscriber numbers in Italy,
or any of the other 20 countries where its mobile TV services are
available. "It's pretty early days in Italy," said Sarah Hancy, head of
TV and video at Vodafone Group plc

Such spats expose just how new the European mobile TV market is.
Regardless of exactly how many subscribers there are, the point is there
aren't very many in Europe right now. At the Mobile TV World Forum in
London Telecom Italia, TeliaSonera AB, Vodafone, and BT Movio (the BT
Wholesale mobile TV service) wouldn't reveal subscriber numbers.

That doesn't mean the market isn't worth anything, though. According to
Yankee Group Research Inc., Europe's mobile TV market was worth 600
million euro (about $800 million) in 2006, and is set to grow to be
worth 3.3 billion euro (about $4.4 billion) in 2011. Mobile TV in Europe
will have a 7 percent penetration rate of active mobile users by 2011,
predicted Yankee, of which 70 percent will be "casual" users, which
means those that occasionally sample unicast (on demand) content.
Globally, there will be 250 million mobile TV/video users by 2011,
generating revenue of 10.5 billion euro (about $14 billion), according
to the research firm.

Carriers Rage at Reding

A bigger storm is brewing in Brussels where European Commissioner Vivian
Reding has somewhat controversially backed DVB-H as the standard for
delivering mobile TV.

That's an issue for many in the sector as the industry is still divided
on whether broadcast networks or 3G networks are the best distribution
method for mobile TV.

BT Movio, which offers a wholesale mobile TV service based on DAB-IP
(Digital Audio Broadcast Internet Protocol), has urged the industry to
lobby against the EC's proposals. "We need to worry about what the
European Commission is doing," said Dominic Strowbridge, marketing
director at BT Movio. "[Mobile TV] should have a consumer-led approach."

Vodafone, which prefers to stream TV content over its 3G networks, said
it doesn't see the need to use broadcast networks for mobile TV until
more people are using the service and causing mobile network congestion.

Vodafone said the only place so far where it has experienced any network
overload is in Newbury in the U.K. - the company's headquarters - where
employees are trying out the service. "If we see sufficient [usage]
peaks then we'll see the need to consider DVB-H," said Vodafone's Sarah
Hancy. "If we have big mass market take-up, then a broadcast model might
be the way to go."

Other operators disagree with the EC's position just on the principle
that some markets should not be regulated. "We need to regulate natural
assets, but you can't regulate your way to a [mobile TV market]," said
Kennet Radne, vice president, head of content partner management, at
TeliaSonera.

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