Platform strategy example - Mobile television

A focus for our platform strategy projects has been mobile TV, with many players looking either at implementing new services or demanding to understand how this new medium might impact their business. Here our combination of experience in content distribution, spectrum management and regulation provides a potent mix.

Specifically we have assisted clients with:
  • Trial result analysis and presentation
  • Review of the spectrum/technology options for mobile TV
  • Understanding the regulatory framework and facilitating dialogue with regulatory/government stakeholders

One of our clients, BT Movio successfully rolled out its new wholesale mobile TV service last year. It offers a strong combination of digital radio and TV services on the move. By using Band III spectrum and a pre-existing DAB network, it has gained a significant market lead.


Background

Mobile communication services in general have enjoyed rapid growth over the last decade. As the main Western markets become saturated, operators and technology vendors look to two sources of growth:

  • New content-based services in existing markets
  • Developing regions – such as India and China

Mobile entertainment has had an encouraging though relatively modest start, with ringtones – which overtook sales of singles a few years ago. Network advances mean that more sophisticated content can now be delivered including audio and video. Among the new mobile services, Mobile Television has caught both industry and consumer attention. Across the globe, numerous trials have reported strong consumer interest in this service and this has encouraged many mobile operators to start preparing for mobile TV services.

Lehman Brothers recently estimated that there will be 50m mobile TV-equipped handsets by 2009, with the market valued at around $15b by then. Others have estimated even more rapid growth.

For this growth to be realised, all of the key ingredients of mobile TV must come together: technology, spectrum, content and business models. The key is to make a service proposition that customers will value and for which they will reward operators through increased revenue or lower churn. Numerous trials around the globe have demonstrated public interest in this new phenomenon, encouraging operators to persevere with preparations for commercial services.


Trials

Given the large investments required to roll-out mobile TV, the mobile operators and technology vendors have been keen to hold trials to gauge consumer interest and willingness to pay. You can read about the results of one of the largest trials, which was conducted in London by BTMovio in 2005. Here is a link to the article we co-wrote with them.

Enthusiasm for the new service was reported by a broad cross-section of participants. The most
surprising results were:

  • The importance of being able to listen to the radio
  • The extent to which the devices were used for TV/radio within user’s homes
 
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