Many Mobile TV Broadcasting Options Will Not Be Financially Viable, Says Analysys

Business Wire, June 28, 2006

CAMBRIDGE, England -- Despite high expectations for mobile TV and radio services, only a small number of broadcasting technology options will be financially viable, according to a new report, Evaluating the Options for Mobile TV and Radio Broadcasting in Western Europe, from Analysys, the global advisers on telecoms, IT and media (http://research.analysys.com).

As consumer demand for mobile TV and radio increases and broadcasting services begin to emerge during 2006, there will be strong competitive pressures on mobile operators to respond. However, according to report co-author, Dr Alastair Brydon, "There is a strong chance that mobile users will not spend a substantial amount on mobile TV and radio services, or video-on-demand and other mobile broadcasting services."

Mobile operators in Western Europe are already evaluating several broadcasting technologies, including DAB-IP (Digital Audio Broadcasting - Internet Protocol), T-DMB (Terrestrial Digital Multimedia Broadcasting), DVB-H (Digital Video Broadcasting - Handheld) and TDtv, alongside the option of relying on enhanced 3G networks. If they opt for a dedicated broadcasting technology, they must decide whether to build their own networks or to share the cost and risk with other operators and/or broadcasters.

Financial modelling presented in the report reveals that small operators will have a very limited choice of viable options. According to Alastair Brydon, "Sharing a broadcasting network with a number of other mobile operators will be essential. With a shared network, either DAB-IP or DVB-H could yield attractive returns," says Alastair Brydon. While DAB-IP is potentially the cheapest solution, it is only appropriate in those few markets where DAB has been deployed extensively. Furthermore, only a limited range of DAB handsets and broadcast channels may be available. DVB-H is currently attracting the most interest from mobile operators in Western Europe and is the most likely to achieve significant economies of scale on both infrastructure and handsets.

This report evaluates the realistic deployment options for each of the mobile broadcasting technologies that are likely to be used in Western Europe.

Contact Analysys on 44 (0) 1223 460600, email research@analysys.com, or visit www.analysys.com.

An extended version of this release and a report executive summary are available to journalists on request.