Outlook Point of View, February 2007
For communications service providers, mobile TV services have real potential to boost top-line revenue growth, increase market share and improve customer satisfaction and retention. The scale of the opportunity is enormous. According to Accenture and IDC estimates, the mobile TV market value will be worth $30 billion by 2009.
However, existing mobile video offerings have suffered from a number of technical issues: irregular image streaming, buffering and low image quality. At the same time, creating a mass market for mobile TV has been slowed by the comparatively few users that can be served, as well as by the limited amount of content that can be transmitted.
Digital video broadcasting-handheld, or DVB-H, promises to change all that—transforming high-quality TV-on-the-go into a mass market reality. DVB-H implementations present a number of business and technical challenges that must be overcome. Yet the potential payoff is great: the ability to create new and innovative mobile video services to fuel profitable growth.
The DVB-H Opportunity
Adopted by the European Telecommunications Standards Institute (ETSI) in December 2004 as the mobile TV broadcasting standard for Europe, DVB-H is a terrestrial digital TV standard that allows mobile phones and handheld computers to receive TV broadcasting over a digital TV network without using mobile phone networks.
DVB-H combines traditional broadcast standards with elements specific to handheld devices. As such, it has several significant advantages over cellular technology in the mobile TV space. Unlike cellular services, which can be accessed only by a relatively small number of users in any one location at the same time, DVB-H services are available to an unlimited number of users, enabling a cost-effective solution for live video streaming.
DVB-H content is distributed over broadcasting networks to DVB-H enabled devices. These devices are characterized by low power consumption (providing users with up to four hours of viewing time), high-speed data throughput and quality reception at high-motion speed. Most important, the cost of deploying a DVB-H network is significantly less than for a cellular network deployment of equivalent size.
The scale of this opportunity is already well understood by mobile operator CEOs, who have identified mobile TV as the most important area for investment for the next three to five years. Momentum is building fast. Worldwide, 16 countries are now either involved in DVB-H trials or are targeting a service launch.
Meeting the Challenges of DVB-H Implementation
Before operators can successfully exploit the enormous potential of DVB-H, various business, operational and technical issues must be understood and addressed.
At a micro level, DVB-H deployments raise a number of specific challenges:
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A complex, end-to-end environment involving multiple partners must be effectively managed if a complete service is to be developed.
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Infrastructure implementation will require major systems integration efforts between the communications operators and broadcast operators.
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Rapid time-to-market is essential to secure competitive advantage.
At a macro level, taking advantage of the DVB-H mobile TV opportunity calls for seamless convergence of two separate value chains—traditional TV and wireless communications. Accordingly, full integration must be achieved between, on the one hand, the interests of TV manufacturers, TV vendors, TV content providers and digital TV network operators; and, on the other hand, the interests of terminal manufacturers, equipment vendors, platform vendors and mobile network operators.
Achieving that seamless convergence of the wireless and television value chains of a DVB-H solution requires developing a functional architecture that can join the technically separate networks, accommodating and integrating the interests of TV broadcasters, mobile operators and the other parties involved, while ensuring that customers benefit from a high-quality, reliable and flexible service.
Keys to Success
Here are several keys to DVB-H success, based on our mobile TV implementation experiences with companies.
Integration of Disparate Technologies
Key to any successful DVB-H implementation will be deep systems integration knowledge (with a special focus on wireless value-added services and business support systems integrations), as well as strong knowledge of conditional access system technology and its integration with broadcasting network and IT architectures.
Effective Collaboration Platform
A collaboration platform is necessary to bridge the mobile and broadcast operators. Encompassing a short message service front end; a managed-site portal; an electronic program guide gateway; billing integration and reporting; and accounting capabilities, the platform must deliver effective deployment, provisioning, execution, management and billing of DVB-H services.
End-to-End Service Coverage
A service delivery platform is necessary for the management of value-added services. A service delivery platform can enable operators and content providers to deliver end-to-end service through product design, business case definition, customer care, service management and hosting.
Implementation Experiences
Several European companies are out in front when it comes to mobile video services. For example, we worked with one European wireless provider on a DVB-H solution that was developed in only five months, in time to deliver mobile services to customers in conjunction with a major sporting event. The implementation helped the company strengthen its reputation as a market innovator, achieving valuable differentiation in the crowded mobile telecommunications market.
Another wireless provider also launched a DVB-H solution that has helped the company rapidly close the competitive gap with other wireless providers in its marketplace. Its mobile TV offering uses Accenture’s solution on an outsourcing model. The provider has been able to develop innovative services rapidly, while also enabling business support systems integration, integration of the conditional access system, and electronic program guide processing. The technical foundation for the new offering was developed in only 12 weeks.
Technology, Consumers and the Future of Mobile TV
DVB-H, and mobile TV services in general, raise a number of questions. How realistic is it to expect mobile TV to generate significant revenues? What developments are expected in content production to match mobile demand? Will consumers really want to watch television and movies on a small device?
A trial by Finnish Mobile TV found that about 60 percent of the participating viewers felt that the service would become popular. In addition, 40 percent of viewers felt that they would either acquire a DVB-H capable phone at the time they purchased their next phone or when DVB-H enabled services became more common. And 47 percent felt that they were likely to subscribe to the service and acquire a DVB-H phone in the future.
Many challenges remain, of course, but DVB-H shows great promise in supporting profitable growth. It provides a platform to help wireless providers move effectively into the realm of mobile media services on the quest for high performance.
About the Author
Fabio Mungo leads the Digital Video Broadcasting-Handheld service line for Accenture Communications, Media and Technology.* He is based in Rome.
*formerly Communications & High Tech
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