[opendtv] News: Digital TV on a Cell/ Boom or Bust?
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 30 Nov 2004 07:10:24 -0500
Digital TV on a Cell/ Boom or Bust?
November 30, 2004 12:00am
Source: Reed Business Information. All Rights Reserved.
Electronic News: Texas Instruments Inc.=20
presented its Hollywood digital TV chip late last=20
month with fanfare reminiscent of a movie=20
premiere. Reporters' expectations were raised by=20
excited calls from TI representatives, looking to=20
book an interview days in advance, and flashy=20
reminders of the announcement sent as gifts.=20
Executives and analysts poured into a=20
well-publicized Webinar, chiming in for their=20
scoop of the action. And members of the media=20
were entertained with one-on-one interviews post=20
Webinar.
A few weeks later, Qualcomm looked to steal the=20
spotlight, announcing its own nationwide=20
"mediacast" network subsidiary aimed at digital=20
TV for cell phones. Dubbed MediaFLO USA Inc., the=20
company plans to offer media content for U.S.=20
CDMA2000 and WCDMA (UMTS) cellular operators,=20
giving TV stations and networks, cable TV and=20
satellite operators and networks, and other=20
content providers a major new distribution=20
channel.
But with an expected DTV cell phone rollout date=20
sometime around 2007, it's hard to say whether=20
the fanfare will be worthwhile and whether=20
MediaFLO and chips like Hollywood will become=20
stars in the mobile device space.
"Obviously, a development like putting digital TV=20
technology into a single chip is very beneficial=20
for the mobile TV idea," David Linsalata, an IDC=20
associate research analyst, specializing in=20
mobile devices and digital TV, said of the TI=20
announcement. "Texas Instruments had a lot of=20
expertise in the mobile device space and a lot of=20
expertise with semiconductors. They are able to=20
produce this package, if they can get past all=20
the possible barriers."
DTV has its obstacles in the mobile space,=20
including interference from other functions on=20
the phone like Wi-Fi and GPS; screen size and=20
resolution; battery life; standards still being=20
in flux; and speed requirements, Linsalata said.=20
But the pay off could be big for chipmakers,=20
service providers and operators, alike. TI's Kush=20
Parikh, for one, expects that by 2008, more than=20
100 million mobile phones will be enabled with=20
DTV.
"The operator is always trying to figure out ways=20
to increase ARPU [average revenue per user].=20
There are streaming services that exist today=20
that aren't that scalable or economically=20
feasible long term," the worldwide strategic=20
marketing manger for the mobile connectivity=20
solutions division of TI's wireless terminal=20
business unit said. "That's why something like=20
this broadcast television will increase the usage=20
of people using their handsets. The more people=20
are using their handsets, the more likely they=20
are to make a phone call, pause a video clip and=20
send and message. Clearly, the operators see it=20
as a revenue generator technology."
While Parikh admits that the business models are=20
far from being worked out, Qualcomm has the same=20
idea based on partnering and running off of the=20
700MHz spectrum, for which it holds licenses.
"Qualcomm's MediaFLO solution brings the cable=20
and digital TV realms into the mobile value=20
chain," said Jane Zweig, CEO of The Shosteck=20
Group, an international telecommunications=20
consultancy. "New partnerships and new revenue=20
streams will be enabled as the content and mobile=20
worlds become more tightly bound together. These=20
opportunities exist for both vendors and=20
operators alike."
Indeed, Qualcomm is so committed to the MediaFLO=20
mediacasting network -- which will support 50=20
to100 national and local content channels,=20
including up to 15 live streaming channels and=20
numerous clip-cast and audio channels at up to 30=20
frames per second - it has said it plans to see=20
$800 million in investments over the next 4 to 5=20
years go into the subsidiary.
Meanwhile, TI will put its digital RF processor=20
technology to use for Hollywood, collapsing the=20
traditional three-chip solution, which includes a=20
tuner, OFDM demodulator and channel decoder=20
processor, into the a single chip for digital TV=20
phones. Hollywood will receive live digital TV=20
broadcasts at 24 to 30 frames per second, and=20
will be support Digital Video Broadcasting -=20
Handheld (DVB-H), which was developed for Europe=20
and is expected to extend to North America, and=20
the Japanese specification, Integrated Services=20
Digital Broadcasting - Terrestrial (ISDB-T).
Qualcomm expects to begin commercial operation of=20
the new network in 2006, which is also when TI=20
expects to begin sampling Hollywood.
<<Electronic News -- 11/29/04>>
<< Copyright =A92004 Reed Business Information. All Rights Reserved. >>
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