TV and Video Services on a Mobile Phone: the killer application for 3G?

Contents

0 Summary

1 Mobile TV and video offers real potential for 3G network operators

2 Evidence grows for strong latent demand for mobile TV and video services

2.1 TV usage and pay-TV revenues demonstrate the powerful force of TV in the consumer market

2.2 '3G TV'  may be the antidote to slow 3G take-up

3 W-CDMA is best suited to short, premium-priced video clips

3.1 Limitations of W-CDMA networks and handsets constrain the ability to deliver TV and video services

3.2 Limited volumes of premium-priced video clips can achieve a balance between revenue per Mbyte and affordability

4 Technology developments are needed for intensive mobile TV and video

4.1 W-CDMA HSDPA and advances in video coding are key to enhancing the profitability and quality of 3G video services

4.2 Alternatives to 3G macrocells will be required to support extensive delivery of TV or video to mobile phones

4.3 Alternatives to broadcasting technology also need to be considered

4.4 Developments in mobile devices will be key enablers for mobile TV and video services

4.5 Mobile operators must carefully monitor the diverse technological approaches across different markets

4.6 Technology must be complemented by other critical ingredients to achieve success with mobile TV and video

Actions

List of figures and tables

Figure 0.1 Impact of pricing and data rate on revenue per Mbyte for a three-minute video clip

Figure 2.1 Comparison of time spent using TV, radio, home Internet and mobile phone services per person per day in the USA and the UK

Figure 2.2: Growth of EV-DO customers in South Korea

Figure 2.3: Pro rata annual ARPU for SKT, March 2004

Figure 2.4: Pro rata annual ARPU for KTF, quarter ending June 2004

Figure 2.5: Split of SKT June data packets by different content types, October 2003

Figure 2.6: Split of KTF EV-DO packets by different content types, quarter ending June 2004

Figure 2.7: Split of June hits by different content types, October 2003

Figure 2.8: TV session lengths in the Finland mobile TV trial

Figure 2.9: Time spent viewing individual TV programmes in the Finland mobile TV trial

Table 3.1: Comparison of Mbyte consumption of various service scenarios

Figure 3.1: Data consumption of typical mobile data services

Table 3.2: Revenue per Mbyte for example services

Figure 3.2: Relationship between cost to end users and programme length for high/low video quality and revenue per Mbyte of USD1/0.5

Table 3.3: SKT June pricing for TV and video-on-demand services, August 2004

Table 3.4: KTF fimm pricing for TV and video-on-demand services, August 2004

Figure 3.3: Revenue (per Mbyte and per download) from download of a three-minute 4.5Mbyte video clip from SKT June and KTF fimm, by different types of user, August 2004

Table 3.5: Examples of 3 video services in the UK

Table 3.6: Examples of 3G video-clip services in the UK

Figure 3.4: Impact of pricing and data rate on revenue per Mbyte for a three-minute video clip

Table 4.1: Broadcasting options for delivery of TV to mobile devices