1. MOBILE-TV Visa Friström Tapio Haantie T-109.7510,Research Seminar on Telecommunications Business spring 2006

2. Agenda Introduction Technical background Mobile-TV services Mobile-TV pilot case Business models Mobile operators Network operators Broadcasters, aggregators, content providers Handset vendor strategies

3. Introduction Worlds most popular entertainment product goes mobile Various competing standards High expectation to be the next killer application in telecommunication business Some analytics estimates of 50 million Mobile-TV users by 2009

4. Competing Standards part 1 DVB-T DVB-T is the world's most used digital terrestrial television system Consumes too much battery DVB-H Latest development from DVB family ETSI standard Based on DVB-T technology Consumes less battery (time slicing) Improves the robustness of the difficult reception environments with built-in antennas IP-Datacasting

5. Competing Standards part 2 MediaFLO Developed by QUALCOMM Based on FLO (Forward Link Only) technology Currently popular in North America Lacking handset vendors support T-DMB Operates via satellite (S-DMB) or terrestrial (T-DMB) DMB is based on Eureka 147 standard, also known as DAB, and has some similarities with DVB-H Narrowband solution First real Mobile-TV standard in commercial use (South-Korea ) Popular in Asia Some pilots in Europe

6. Services – DVB-H part 1 Electronic Service Guide (ESG) Similar to EPG Provides list of available services Streaming Services Audio/Video Not usually saved on the end device but is viewed at the same time as it is broadcasted Interactive Services one-way or a two-way return channel for possible interactions with the content Data channel provided by the mobile operator (e.g. GPRS) Possible services online shopping interactive TV-programs

7. Services – DVB-H part 2 Non-interactive services No return channel Data is retrieved prior to the usage Possible services News Tv-Guide information Software Services IPDataCast enables to send application to end users Games, music, software update

8. Mobile-TV pilot program part 1 DVB-H pilot program in Helsinki, 2005 Parties involved Nokia, Elisa, Sonera, Digita,Yle, Mtv3, Nelonen Nokia provided Nokia 7710 media device handset

9. Mobile-TV pilot program part 2

10. Mobile-TV pilot program part 3 Results 41% of pilot participants would be willing to purchase mobile TV services and half thought that a fixed monthly fee of 10 euros was a reasonable price to pay. According to the pilot results, pilot participants not only wanted to watch familiar program offerings, but they would also welcome mobile TV content that is suitable for short and occasional viewing Participants also watched mobile TV at different times than traditional TV peak hours. In general, mobile TV users spent approximately 20 minutes a day watching mobile TV Mobile TV was most popular while traveling on public transport to relax or to keep up to date with the latest news although it also proved popular at home for entertainment and complementing participants main TV watching.

11. Business Models - Mobile operators Chance to create revenues by increasing their data traffic through the return channels on interactive services Possibility to offer e-commerce and billing services to partners Make additional use of mass infrastructure for DVB-H boosters and Create a new unique program channels that provide opportunities for brand differentiation.

12. Business Models – Network operators DVB-H utilizes existing mast and transmit networks -> increased revenues with fairly low investment. Traditional mobile network operators could start migrating to broadcasting industry through investing into DVB-H network

13. Business Models – Broadcasters, Content Aggregators and Content Providers New peak hours and enlarged audience for broadcasters Open door to new business opportunities with mobile network operators Broadcasters can produce or buy new mobile specific content, use the new peak hours to rerun or advertise and offer unique content for short viewing periods

14. Handset Vendor strategies part 1 Some important strategic elements Co-operation between different players in the early stages DVB-H alliance vs QUALCOMM Or stay as late mover Tradeoffs in handset design screen size vs compact size Bundling

15. Handset Vendor strategies part 2 Current strategic status of major vendors Nokia Major supporter of DVB-H – large investments Involved in various different DVB-H pilot programs across the globe First company that has put out clear specs for first Mobile-TV phone device, N92. Develops DVB-H networks simultaneously Siemens Not taking part in pilots Focuses on handheld devices

16. Handset Vendor strategies part 3 Samsung Supports all the major standards Recently launched nine different device models for different standards More involved in DMB pilot programs Motorola No active participation in pilots Member in Mobile DTV alliance with Nokia, Intel, TI and Microsoft

17. Conclusions High expectations from the market to be the next killer application Pilots programs support the expectations Some surveys has given negative results We have seen this before.. No one really knows Questions that still need to be answered screen size possible copyright fees – e.g. case Gramex bad coverage Are people willing to pay for services that they can get free or have already paid for?

18. Questions?