1 / 13

Mobile Television Challenges of advanced service design

Mobile Television Challenges of advanced service design Johannes M. Bauer, Im Sook Ha, Dan Saugstrup LA Global Mobility Roundtable Marina del Rey, CA, June 1, 2007 Overview Value net of mobile TV Platforms and solutions Factors shaping market evolution DMB in South Korea

oshin
Download Presentation

Mobile Television Challenges of advanced service design

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Mobile TelevisionChallenges of advanced service design Johannes M. Bauer, Im Sook Ha, Dan Saugstrup LA Global Mobility Roundtable Marina del Rey, CA, June 1, 2007

  2. Overview Value net of mobile TV Platforms and solutions Factors shaping market evolution DMB in South Korea Lessons and outlook

  3. Value net of mobile TV • Value-chain of mobile voice services • Few players (equipment manufacturers, network operators, service providers) • Standardization sufficient to coordinate • Value-net of mobile TV services • Larger number of players • Mobile operators • Content providers • Service providers • Application providers • Broadcast companies • Network operators (mobile and broadcast) • Equipment manufactures • Challenges of coordination and service integration

  4. Platforms and solutions

  5. Status of deployment

  6. Technology Spectral efficiency Propagation Bandwidth Policy Spectrum policy Market design Industrial policy Mobile sector Performance/ evolution Socio-cultural framework Economics Cost/risk/profit Supplier strategy Demand Factors shaping market evolution

  7. The satellite ‘Han-Byul’ S-band 2.630~2.655GHz Ku-band 13.824~13.883GHz Ku-band 12.214~12.239GHz Gap filler S-band DMB Broadcasting Station S-DMB VHF Ch7~Ch13 (174~216MHz) T-DMB Transmission tower South Korean DMB infrastructure

  8. Technology issues of mobile TV • When making technology adoption, policy makers considered business as well as technology • Influencing criteria such as the cost effectiveness of the infrastructure, equipment, and standards • Closely linked to and co-evolved with technology and firm strategies

  9. Policy toward mobile TV (1) • Licensing Policy • Korean Broadcasting Commission KBC adopted RFP (Request for Proposal) for provider selection • For T-DMB in Korea, there are three T-DMB service providers (KBS, MBC, SBS) and three non-terrestrial service providers (CBS, YTN DMB, KMMB) • TU Media took a license as the first S-DMB service provider (in Dec. 2004) • Before licensing, TU Media had already invested substantial capital in launching a satellite ($97 million), the installation of gap fillers ($230 million) and the establishment if a DMB broadcasting center($ 60million) • The circumstances of policy in which government should support to DMB service were created  Korean DMB was developed by a leading mobile provider’s technology-push to market rather than by market-pull Source : MIC

  10. Policy toward mobile TV (2) • Retransmission of terrestrial TV programs via S-DMB • S-DMB provider has insisted on retransmission (consumer needs, fair competition with T-DMB, …) • KBC left the issue to contractual agreements between providers • Terrestrial TV broadcasters have not signed retransmission contracts • Pay service to T-DMB • At least initially, advertising revenues would be too fragile and volatile to cover the costs of gap fillers and other start-up expenses • Users wanted to maintain T-DMB as a free service, also VHF channels are regarded as a public asset • Up until now, KBC has had difficulties in finding solutions to the T-DMB cost problem • The profit structure of the industry could be changed according to how policies for competition are designed

  11. Business aspects of mobile TV • Business issues Technology development Public Policy regime • Competition in business environment will change due to future technology development and public policy regime • T-DMB: pricing policy (Free rate  Monthly flat fee, per channel fees, or charges for specific contents) • S-DMB: Public policy (Contents  Allowing retransmission of terrestrial TV programs)

  12. The Korean experience • In addition to high initial cost, market demand has fallen short of expectations • At the end of 2006, S-DMB reached an estimated one million subscribers. But due to initial investment cost and high fixed cost still loss-making • Below 50% of short-term break-even goals of 2.2 million subscribers • Optimistic predictions • 6.6 million S-DMB subscribers by 2010 (TU Media) • 10 million T-DMB subscribers by 2010 (ETRI) • However, there are many issues awaiting solution • Policy issues and conflicts waiting to be addressed by government • Pay service for T-DMB • Retransmission for S-DMB • These issues will be repeated when Korea introduces other convergence services, already visible in IPTV and Wibro • Solutions to these issues could lead to major changes to DMB business environment in the future

  13. Lessons and outlook • Important technical and economic differences between platforms/solutions • Factors shaping market evolution • Frequency allocations (in-band, out-of-band) • Eligibility for a mobile TV license • Rules governing competition among providers • Revenue model (pay, ad-financed, hybrids) • Ability of providers to bundle with other services • Competition by substitute services (e.g. vodcasting) • Policy and market rules should eliminate bottlenecks and facilitate experimentation

More Related