Investing in Mobile TV

SUMMARY

Mobile TV has emerged as the next major mobile application. Nearly every 3G mobile service in operation today includes a Mobile TV service. The business analysis in this report found that this is a cost effective way to start a service but is only one element in building a profitable Mobile TV service.

This report examines the broadcast, multicast, and satellite alternatives and defines how each of them may be used to extend a Mobile TV strategy to address a mass market. One surprising conclusion was that WiMAX is a strong technology choice for creating a monolithic mass market Mobile TV service.

Mobile TV services require a significant investment by mobile operators, broadcasters, and content providers to create profitable services. This report identifies the technology and business strategies that will be required to build profitable services in a full range of markets.

This 130 page report identifies the strategies that the leading mobile operators are using for their Mobile TV strategies. In includes the leading Mobile TV services in Europe, Asia, and North America. It is clear that a new set of companies such as Qualcomm's MediaFLO USA and Crown Castle's Modeo in the U.S. as well as RAI the national broadcaster in Italy will provide Mobile TV broadcast services through the mobile carriers. This report discusses the strategies of these companies and evaluates the business issues that they face.

The report also discusses the strategies and business case for the various kinds of content providers that create, aggregate, or otherwise offer content for Mobile TV services. This includes companies such as MobiTV in the U.S. and ROK in the UK that can deliver a set of Mobile TV channels ready for transmission over a mobile network.

The report also discusses the regulatory issues that face Mobile TV service providers and the technologies that are available to them. The business case analysis and the global forecast in this report are based on these technical and regulatory constraints.

The business case compares the profitability of 3G, multicast, broadcast, and satellite technologies. It found that each of these technologies has its place depending on the stage of development and the timing of the Mobile TV service.

The forecast section includes global and regional forecasts for the services as well as the infrastructure equipment and terminals required to support Mobile TV services. The regional breakdown is Asia Pacific, North America, Western Europe, and the Rest of the World, which includes Eastern Europe, the Middle East and Africa, and Latin America.

Who Should Buy This Report?

• Mobile operators
• Company executives
• Mobile TV broadcast operators
• Marketing/product managers
• Mobile system manufacturers
• Network planners
• Mobile handset manufacturers
• Engineering managers
• Broadcast systems companies
• Venture capitalists
• Video systems companies
• Investors

TABLE OF CONTENTS

1. Executive Summary

• 1.1Introduction
• 1.2Global Regulation
• 1.3Mobile TV Technologies
• 1.4Market Strategies
• 1.5Business Case Scenarios
• 1.6Mobile TV Market Forecast
• 1.7Conclusions & Recommendations

2. Mobile TV Regulation

• 2.1Introduction
• 2.2Europe
• 2.3North America
• 2.4Asia-Pacific
• 2.5Digital Dividend

3. Technology Strategies

• 3.1Overview
• 3.23G and WiMAX Technologies
• 3.3Broadcast Technologies
• 3.4Satellite Technologies
• 3.5Selecting a Mobile TV Technology

4. Mobile Operator Strategies

• 4.1Overview
• 4.23G Strategies
• 4.3Terrestrial Broadcast Strategies
• 4.4Satellite Only Strategies
• 4.5Hybrid Strategies

5. Content Strategies

• 5.2Mobile TV Broadcast Networks
• 5.3Content Producers

6. Business Case Scenarios

• 6.1Mobile TV Value Chain
• 6.2Business Case for 3G Mobile TV Services
• 6.3Business Case for Broadcast Mobile TV Services
• 6.4Choosing a Mobile TV Technology
• 6.5Business Case for Content Producers
• 6.6Business Case for Advertisers
• 6.7Business Case Assumptions

7. Market Forecast

• 7.1Forecast Methodology
• 7.2Global Forecast
• 7.3Asia Pacific
• 7.4Western Europe
• 7.5North America
• 7.6Rest of the World

8. Mobile TV Winners and Losers

• 8.1Overview
• 8.2Mobile Operators
• 8.3Mobile TV Broadcast Networks
• 8.4Mobile TV Satellite Networks
• 8.5Content Producers
• 8.6Advertisers

9. Appendix I: Companies in this Report

10. Appendix II: Glossary

11. Vendor Profiles

• 11.13Vision
• 11.2Alcatel
• 11.3DiBcom
• 11.4Ericsson
• 11.5Harris Corporation
• 11.6IPWireless
• 11.7LogicaCMG
• 11.8mBlox
• 11.9Nokia
• 11.10Nortel
• 11.11Thomson
• 11.12UDCast

Table of Figures

• Figure 1-1: Mobile TV Subscribers by Network
• Figure 1-2: Broadcast Mobile TV Subscribers by Region
• Figure 1-3: Broadcast Mobile TV Service Revenue by Region
• Figure 3-1: RAI's DVB-H Broadcast Network Architecture
• Figure 3-2: Unicast versus Broadcast
• Figure 4-1: Mobile Operator TV Service Strategies
• Figure 4-2: Korea Telecom
• Figure 5-1: Interactivity and Groups Adds Value
• Figure 6-1: Mobile TV Value Chain
• Figure 6-2: Subscribers Required for Breakeven for 3G Mobile TV at 5 Years
• Figure 6-3: Penetration Rates Require for Breakeven at 5 Years
• Figure 6-4: Cost per Subscriber for 3G Mobile TV at 5 Years
• Figure 6-5: Metro Area Breakeven Points for Mobile TV Broadcast Networks
• Figure 6-6: U.S. National Breakeven Points for Mobile TV Broadcast Networks
• Figure 6-7: Penetration Rates Required at Breakeven
• Figure 6-8: Scalability vs. Investment in Mobile TV Networks
• Figure 6-9: Five Year Mobile TV Network Costs
• Figure 7-1: Mobile TV Introduction Timeline
• Figure 7-2: Mobile TV Subscribers Unicast/Multicast versus Broadcast
• Figure 7-3: Mobile TV Subscribers by Region
• Figure 7-4: Mobile TV Subscribers, Terrestrial versus Satellite
• Figure 7-5: Broadcast Mobile TV Subscribers by Technology
• Figure 7-6: Unicast/Multicast Mobile TV Subscribers in Asia-Pacific, by Country
• Figure 7-7: Broadcast Mobile TV Subscribers in Asia-Pacific, by Country
• Figure 7-8: Broadcast Mobile TV Subscribers in Asia-Pacific, by Technology
• Figure 7-9: Unicast/Multicast Mobile TV Subscribers in Western Europe, by Country
• Figure 7-10: Broadcast Mobile TV Subscribers in Western Europe, by Country
• Figure 7-11: Broadcast Mobile TV Subscribers in Western Europe, by Technology
• Figure 7-12: Unicast/Multicast Mobile TV Subscribers in North America, by Country
• Figure 7-13: Broadcast Mobile TV Subscribers in North America, by Country
• Figure 7-14: Broadcast Mobile TV Subscribers in North America, by Technology
• Figure 7-15: Unicast/Multicast Mobile TV Subscribers in RoW, by Region
• Figure 7-16: Broadcast Mobile TV Subscribers in RoW, by Region
• Figure 7-17: Broadcast Mobile TV Subscribers in RoW, by Technology
• Figure 8-1: Cumulative Net Revenue to Mobile TV Operators
• Figure 8-2: Mobile TV Content Provider Revenue
• Figure 11-1: Alcatel Mobile TV Concept
• Figure 11-2: MBMS Architecture
• Figure 11-3: Nokia Mobile TV Approach
• Figure 11-4: Nokia N92 Mobile TV Device
• Figure 11-5: Rich Media Vision from Nortel

Table of Tables

• Table 1-1: Analog TV Switch off
• Table 1-2: Mobile TV Technologies
• Table 1-3: Mobile TV Services
• Table 2-1: Analog TV Switch off
• Table 3-1: 2G, 3G and WiMAX Technologies
• Table 3-2: Mobile TV Broadcast Spectrum Options
• Table 3-3: Broadcast Mobile TV Services and Trials
• Table 4-1: 3G Mobile TV Services
• Table 4-2: Terrestrial Broadcast Only Mobile TV Services
• Table 4-3: Satellite Only Based Mobile TV Services
• Table 4-4: TU Media's Demographic Details
• Table 4-5: Service Providers Offering 3G and Terrestrial Broadcast Mobile TV
• Table 5-1: Mobile TV Broadcast Networks
• Table 6-1: Business Case Assumptions for 3G and WiMAX Technologies
• Table 6-2: Business Case Assumptions for Broadcast Technologies
• Table 9-1: Companies Consulted for this Report
• Table 11-1: Vendors Interviewed for this report

Annex

All of the charts that are included in Section 5 and Section 6: WiMAX Fixed Market Forecast is also included in the spreadsheet Annex that accompanies this report. In addition there are a number of charts that are not included in the report but that may provide additional clarity to this market.

The Annex includes the following worksheets:

• Global Charts
• Global Tables
• Asia-Pacific Charts
  • Country forecasts for Australia, China, India, Japan, Korea and Taiwan.
• Asia-Pacific Tables
  • Country forecasts for Australia, China, India, Japan, Korea and Taiwan.
• Western-Europe Charts
  • Country forecasts for France, Germany, Italy, Spain and the UK.
• Western Europe Tables
  • Country forecasts for France, Germany, Italy, Spain and the UK.
• North America Charts
  • Country forecasts for Canada and the USA.
• North America Tables
  • Country forecasts for Canada and the USA.
• ROW Charts
  • Regional forecasts for Eastern Europe, Latin America and Middle East & Africa.
• ROW Tables
• Business Case Assumptions
• Business Case Charts