[opendtv] Just in Time for MDTV: AT&T Ending Unlimited Wireless Plans

From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
Date: Thu, 3 Jun 2010 16:51:32 -0500

The problem in the US and Europe is, mobile operators don't see why they should
offer phones with M/H built in, because they don't understand how THEY would
benefit.

Here's a quote from a somewhat related article:

http://www.rethink-wireless.com/2010/06/03/telegent-research-shows-uk-consumers-love-mobile-tv.htm

"There has never been any doubt that consumers want mobile TV. What is in doubt
is how mobile operators can make money out of it, and if they can't then they
don't yet see a reason to offer it."

This is so reminiscent of the days before HDTV, when broadcasters couldn't
figure out how they would benefit. The argument has always seemed brain-dead to
me. The reason the service provider benefits is that customers want it. The
ONLY consideration of the service provider SHOULD be, can I afford to offer the
service? So for example, if FOTA TV to cell phones costs the service provider
next to nothing, and the customers want it, then why not do what customers are
asking for?

Same with HDTV. The cost of transmitting HD content, if not creating it, was
small for the local broadcaster. So why fight it?

Now, at least AT&T customers will have a good reason to want FOTA TV via the
M/H pipe. I suppose that AT&T's response could be that it's an "opportunity
cost." As in, "Yeah, but if I refuse to offer M/H, I can really rake in the
dough when these suckers are forced to pay for all that bandwidth."

That's why you need competition rather than collusion.

Bert

------------------------------
http://www.tvtechnology.com/article/101528

Just in Time for MDTV: AT&T Ending Unlimited Wireless Plans
by Doug Lung, 06.03.2010.

When talking to people about ATSC mobile DTV, I sometimes get the response,
"Why do we need it? We can stream any video we want on our iPhone over the
Internet." The news release AT&T Announces New Lower-Priced Wireless Data Plans
to Make Mobile Internet More Affordable to More People should put an end to
that argument. Indeed, Business Insider's headline was AT&T Just Put A Bullet
in Mobile DTV. The "bullet" was not aimed at ATSC mobile DTV, but Internet
based mobile DTV.

Under the AT&T's new plan, consumers will pay an average of $10/GB for data.
Customers who watch too much online video could be in for "bill shock." I
expect other wireless carriers, at least the major ones, will follow AT&T's
lead. Note that if you read the fine print, some plans advertised as
"unlimited" are really capped at 5 GB/month in the terms of service by saying
that if you are using more than 5 GB/month, you must be violating the terms of
service. Exceeding those limits can be a lot more costly than AT&T's new plan.

As I've pointed out before, using the Internet to distribute video programming
is horribly inefficient. Every viewer needs their own slice of bandwidth to
view the program. If someone sitting next to them is watching the same program
on the same wireless carrier, twice the bandwidth will be needed. Add a third
person and it triples, and so on. Compare this to a broadcast model, where the
same bandwidth is required to reach 1 million people as is required to reach 1
person. As demand for mobile video grows, even with more spectrum, wireless
carriers will have trouble meeting consumers insatiable demand for programming,
especially when they start trying to watch streaming HDTV over a wireless
Internet connection! It looks like broadcast mobile DTV is ending up as the
only economical way to provide consumers live mobile video.

To get an idea of how various on-line activities impact bandwidth usage, check
out AT&T's bandwidth calculator.

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[opendtv] Just in Time for MDTV: AT&T Ending Unlimited Wireless Plans

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