Overview

TV has been described as the “75-year-old killer application.” In a context where Mobile network operators (MNOs) are looking for the few applications which will finally accelerate 3G adoption, it is understandable that Mobile TV would draw so much attention. Still, the question remains: Could Mobile TV be the application that finally lifts 3G? The answer is hardly certain.

This Report examines the business case for Mobile TV from the Mobile operator’s perspective, assessing underlying technologies, the place of the MNO in the value chain, the optimal revenue models, the role of advertising, and the overall revenue opportunity for MNOs. We also build the case for future Mobile TV revenue generation through a case study analysis of current Mobile video services.We ask (and provide answers to) the following questions:

• Can broadcast Mobile TV rescue 3G?
  If operators are thinking of Mobile TV as an application that will act as a catalyst for 3G adoption, then it may be just what they’re looking for.

• Can unicast carry Mobile TV?
  Unicast is already carrying Mobile TV, but as subscribers grow so will the need to shift to a broadcast solution.

• Which technologies are most likely to take off?
  All Mobile TV standards currently being rolled out are likely to gain traction, although some will become more ubiquitous than others.

• Which broadcast Mobile TV model is optimal for a mobile carrier?
  The optimal model for Mobile TV is one that enables operators to provide broadcast Mobile TV with existing spectrum.

• Does Mobile TV need the MNO? How acute is the risk of disintermediation?
  In the short term, the quickest route to Mobile TV ubiquity is via mobile handsets.

• How will MNOs make money from Mobile TV?
  For operators, much will depend on the cost of content, the amount that subscribers will pay, the level of Mobile TV uptake, and the scope of the value chain they own. It is entirely possible that MNOs will see very low and even zero margins directly from Mobile TV subscriptions.

• What is the Mobile TV revenue opportunity?
  Surveys indicate that Mobile TV will be a popular service with subscribers. Particularly in cases where surveys are based on service pilots, end user feedback has generally detailed over 60 percent of participants would pay for Mobile TV services.