Going Mobile: Wireless TV Market in the UK Takes Off

But all is not lost, because there’s yet another option to consider. "Using the little-known 3G Multimedia Broadcast and Multicast Service (MBMS) standard, which could be available from the second half of 2006," Brydon says, " the operators could enable broadcasting to handsets within a 3G network." Rather than establishing a dedicated, point-to-point connection to every handset, MBMS establishes a single broadcast channel in each cell and could be enabled without dramatic changes to the underlying 3G standard. It could also be implemented in the unpaired TDD spectrum, which many 3G operators currently have standing idle.

Is content still king?
One of the potential snags in the rapid evolution of this market, and a factor in the selection of technologies, is the role of the content provider in the total value chain. Media companies are familiar with the broadcasting paradigm and are likely to want to replicate their business models on broadcast technologies. David McQueen, senior analyst for Informa Telecoms and Media and author of the report Mobile TV: Broadcast And Mobile Multimedia, points out that people are most likely to want to watch the brands they know. "People have loyalty and affinity for the existing sources of information," McQueen says. "Take BBC News, for example. You know what it offers and respect it. This is not going to change because it’s available on a smaller screen."

Broadcast media affiliates and partners are also on board. Advertisers are eager to subsidize some content viewing in return for the user’s permission to insert their message onto the 3G screen, especially if they can use input from location detection technologies to capitalize on customer proximity. There are also new and different niche content publishers, such as on-the-spot hometown journalist and the owners of strategically placed Webcams, experimenting with creation of mobile media content. In partnership with mobile media company 3, an Essex turkey farmer set up a system whereby 3G subscribers could dial a number and receive a live video stream from a special pen. Subscribers could switch camera views using the keypad on their handsets, then choose their bird for Christmas dinner. Information on how to purchase it was sent via SMS to their handset. An alternative program for vegetarians permitted customers to sponsor a turkey which would live the rest of its days in peace on a turkey sanctuary.

Some of the differences between the personal computer and the 3G handset as receiver are that the viewer’s identity and location are known to the operator, and a billing relationship is implied with every action. Telecommunications providers have a valuable relationship with each and every subscriber, one which they are not eager to share or jeopardize by putting in the hands of their content provider partners. Nevertheless, digital rights management issues must be addressed in a manner that is consistent with both the delivery technologies and the agreements with the original content copyright holders, and rewards the intermediate elements in the value chain (e.g., content brokers, hosting service providers).

Currently the content and operator partners are trying to determine how much existing content needs to be modified for the mobile handset subscriber to enjoy. Content in the O2 Oxford trial included both regular broadcast stations and as samples of made-for-mobile content. One-third of the study participants are interested in looking at made-for-mobile programming as well as "normal" broadcast TV and radio. They say they may even watch movies on mobile handsets. Vodafone UK and British Sky Broadcasting (Sky) are also experimenting with a mix of specially-designed content as well as more familiar programming. Sky Mobile TV serves up a total of 19 mobile channels including Sky News, Sky Sports News, MTV, Cartoon Network, Discovery, Sky One, and Living TV.