New Entrants
The struggles of established players does not seem to be keeping others from moving into the mobile broadcast arena. Jackson has high hopes for AsiaSat’s wholly owned subsidiary, SpeedCast, which is operating MobiCast, a mobile TV platform available across Asia. Via AsiaSat satellites, SpeedCast delivers video content to 3G mobile phone subscribers. "With this turnkey mobile TV service, mobile operators can generate additional revenues from video content services, and subscribers of these operators can access on their handsets made-for-mobile content as well as their favorite live TV channels anywhere anytime."
By the end of 2008, SpeedCast plans launch and operate, in partnership with Alcatel Lucent, the first hosted DVB-H (digital video broadcasting-handheld) platform in Asia. DVB-H service providers will be able to receive more than 20 local and international channels in DVB-H format, directly delivered via the AsiaSat 4 satellite to their multiple DVB-H transmission towers for broadcasting to handsets, says Jackson. "This managed service includes all the components required to provide end customers with an innovative and high quality Mobile TV experience: conditional access, content management system, rich media interface and world-class content," he says. "This satellite-based service will allow operators to significantly reduce both capital expenditure and operating expenditure associated with building and operating a DVB-H network, leveraging economies of scale thanks to SpeedCast’s centrally hosted head-end in Hong Kong."
China also is seen as a potentially strong market for mobile broadcasting. "This year China suffered unprecedented natural catastrophes and enjoyed the unprecedented great event the Olympic Games. A sharp increase of market request for mobile broadcasting and communications is obvious," says Wu Jinfeng, general manager, China DBSat. "China DBSat will observe closely this tendency and respond to market demands. We have already made some preparations such as frequency filing years before, and expect to see if we can contribute something in this respect.... Satellite will be a good option in China, especially for servicing areas where terrestrial signals do not have a reach."
Jackson believes technology development means satellite players are well primed to have a strong influence in the mobile TV arena, as the demand for video content anytime, anywhere seems set to increase. "As phased array, receive-only antennas become smaller, more efficient and less expensive, it is expected that they will become the normal antenna for vehicles and planes that wish to receive television where the antenna can be fitted into or onto the roof," he says. "They will be able to receive normal Ku-band DTH signals from the same operators that are selling the services to homes." Jackson also sees benefits in S-band satellites. "If television is required to be received on a handheld device, we need to be able to use an omnidirectional antenna in a suitable frequency range that has no interference. That is relatively simple for a terrestrial service but a bit more of a challenge for a satellite service. Part of the S-band frequency range has been chosen for this service when using a satellite. A satellite has the unique ability to serve the whole of the area within its footprint from day one with the only limitation being that the handheld device must have a direct line of sight to the satellite.... For geographically large countries, an S-band satellite can provide the advantage of having an instant, country-wide service on day one."
Some executives see satellite operators and cellular companies entering partnerships to serve the market. "The satellite operator can provide the S-band and Ku-band feeds, and the cellular operator can provide an existing relationship with mobile users," says Jackson. Tong also sees this model becoming common. "I think we’ll be seeing a convergence of technology platforms over the next years. In Korea, Samsung and LG have launched hybrid phones that can receive both free T-DMB and paid S-DMB services. In the long run, single-chip solutions could allow seamless technology convergence at the consumer level. I see mobile satellite service not so much as a competing service to terrestrial but as an eventual complement in enhancing user experience."
Bottom Line
The failure of MBC is evidence that the mobile TV road is not necessarily paved with gold, however, the demand for mobile TV services appears strong in the region. Free terrestrial alternatives will put pressure on operators using subscription- or advertising-based models, but satellites and mobility go hand-in-hand, so opportunities should be strong as the market develops.