Mobile TV madness

Last week I wrote about the national broadcasters and their mobile TV [1] agenda. Now comes word that direct broadcast satellite provider Dish Network Corp. has teamed with Alcatel-Lucent to test DVB-SH [2] (direct video broadcast-satellite services to the handset) technology.

Dish is an important player to watch because of its recent 700 MHz spectrum winnings. The company spent more than $700 million on 168 wireless licenses in the 700 MHz auction but has yet to reveal its plans. This trial certainly has many speculating that the company may be contemplating using DVB-SH in the 700 MHz. DVB-SH can be used in any frequency below 3 GHz, including UHF, L-Band and S-Band.

Dish isn't the first U.S. company to test DVB-SH. Satellite company ICO Global Communications [3] earlier this month deployed a GEO satellite that will deliver a satellite-hybrid terrestrial network using DVB-SH. The company plans to begin market trials in Las Vegas and Raleigh-Durham in mid-2008 of what it calls ICO mim (Mobile Interactive Media). The trials will focus on three areas: entertainment using DVB-SH for mobile TV services, guidance services that will include real-time traffic data and social networking applications and assistance services, which will offer OnStar-like roadside services. Like Dish, Alcatel-Lucent is providing the DVB-SH gear.

Despite the relatively lackluster performance of carrier-driven mobile broadcast TV services, it's apparent other players--i.e., broadcasters, DBS providers and satellite firms--all believe they have the wherewithal to make mobile TV succeed.

While these other services are still in the early stages of development, I think it's time for the carrier-driven mobile broadcast TV services to re-evaluate their pricing scenarios and their business models. If they want to truly capture the mass market potential of this service, they need to make some dramatic changes soon because competition is coming--in many different forms. -Sue [4]