Parks Associates Predicts Consolidation in Mobile TV Market

Business Wire, August 10, 2006

DALLAS -- The nascent mobile TV market in the U.S. cannot support the current number of players and is likely to undergo consolidation, according to Mobile TV: Analysis & Forecasts, a new report from Parks Associates. The report specifically points to Crown Castle's Modeo and Aloha Partner's Hiwire as candidates for consolidation, with both companies planning to launch nationwide mobile TV networks using DVB-H technology.

Parks Associates cites several factors that make consolidation likely. In addition to Hiwire and Modeo, Qualcomm and Sprint-Nextel are both planning to deploy new networks, bringing the total to four. This number is high by international standards despite the fact that the U.S. has a relatively low cellular penetration rate. Italy and South Korea, by comparison, have just two networks each even though consumers in these countries show a stronger propensity for using mobile phones as multimedia platforms, according to Parks Associates' Global Digital Living(TM).

"If you do the math, there are four networks for four operators, and that isn't realistic because you lose all the advantages of network sharing," said John Barrett, director of research at Parks Associates. "Consolidation would be a win-win scenario for the industry. Hiwire needs a network, and Modeo needs a more favorable spectrum allocation. They are a natural fit, whereas Sprint-Nextel has a large subscriber base to support its network and Qualcomm is dedicated to promoting its technology and chipsets."

Mobile TV: Analysis & Forecasts provides an in-depth understanding of the mobile TV market dynamics as well as an analysis of consumer demand. For more information on this report, visit http://www.parksassociates.com or contact Parks Associates at 972-490-1113 or e-mail sales@parksassociates.com.

About Parks Associates

Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts multiple fall events and co-hosts (in partnership with the Consumer Electronics Association) each year. http://www.parksassociates.com