TV on a truly mobile device has long been viewed as the pinnacle of convergent technologies. 3G mobile devices from service providers such as Vodafone and 3 demonstrate that the technology is available to support these services. Capacity and service levels will be further expanded when 3G connectivity is upgraded through high-speed downlink packet access (HSDPA).
Nevertheless, substantial barriers remain:
- Network capacity remains a constraint, along with prohibitive roaming costs
- Services are priced for 3G customer acquisition
- Additional spectrum and network infrastructure is required before mobile TV services such as DVB-H are a reality, which may challenge the original 3G business models.
Mobile network operators are having to come to terms with the relationship between their 3G network investments and needs of the new DVB-H spectrum, as well as considering future Wi-Fi alternatives. Service providers need to consider whether video and music will go the way of other content services and become increasingly ‘off-net’ and, if so, identify the premium value they can capture from their intimate customer service and billing relationships.
Content providers, including broadcasters, are also having to make decisions about their relationships with mobile network operators and other new service providers.
Whatever the future of mobile TV within a wider IP-TV strategy, the focus for the media industry is to develop end-to-end business models that maximise the value of content, advertising and per-use revenue streams and ensure that margins do not disappear into operating or network costs.
This is a period of rapid change, learning and exploration into how interactivity can be combined with broadcast and on-demand services to exploit new business opportunities. We have the expertise to help develop the robust IT infrastructures required to create innovative business models and support new services.