Pyramid Research Identifies a Case for Mobile TV without the Mobile Operator

Business Wire, March 23, 2006

CAMBRIDGE, Mass. -- If last month's Virgin-BT Movio deal is executed as planned, Virgin would become one of the first mobile TV service providers in Europe. This highlights one of the key risks mobile network operators (MNOs) face with Mobile TV - becoming casualties of a dis-intermediation process that would minimize their role in the Mobile TV value chain or remove them altogether. MNOs missed the mobile music boat; clumsiness towards Mobile TV could have a more negative impact.

"With Mobile TV, MNOs have a 12-18 month window of opportunity, an advantage they better not squander with inadequate pricing and quality of service," comments Nick Holland, Pyramid Research Senior Analyst and author of "Rescuing 3G With Mobile TV: Value Chain, Business Models and Monetizing 3G." MNOs provide the fastest route to market since they have a large subscriber base that demonstrates an affinity for portable electronic products. They also have a readymade system for collecting revenues for data services.

Broadcast Mobile TV does not require the operator's cellular network to work. A likely Mobile TV scenario has a hardware vendor or another third party selling Mobile TV subscriptions that use a portable digital TV receiver, standalone device, or a plug-in for existing media players (iPod, PSP, etc.).

Holland concludes, "MNOs must solidify their position in the mobile TV value chain before their role becomes minimized. They will have the main mobile video offerings in the marketplace for another year or two, just as 3G starts reaching some level of maturity. The more they build video watching patterns around the handset, the less vulnerable their position in the value chain will be."

About "Rescuing 3G With Mobile TV: Value Chain, Business Models and Monetizing 3G"

This report examines the business case for Mobile TV, assessing underlying technologies, the MNOs place in the value chain, optimal revenue models, the role of advertising and the overall revenue opportunity for MNOs. The report also builds the case for future mobile TV revenue generation through case-study analysis of current mobile video services. (http://www.pyramidresearch.com/store/rp_mobiletv.htm)

About Pyramid Research

For twenty years, Pyramid Research has helped companies in the converging communications, media and technology industries stay ahead of market trends, understand competitive threats and capitalize on opportunities. (www.pyramidresearch.com)