Tuesday, March 28, 2006

Mobile TV: MNOs May Miss the Boat

Pyramid Research has a report out about Mobile TV and the operators who are about to watch the opportunity slip by them.

From 3G:

"With Mobile TV, MNOs (mobile network operators) have a 12-18 month window of opportunity, an advantage they better not squander with inadequate pricing and quality of service," comments Nick Holland, Pyramid Research Senior Analyst and author of "Rescuing 3G With Mobile TV: Value Chain, Business Models and Monetizing 3G." MNOs provide the fastest route to market since they have a large subscriber base that demonstrates an affinity for portable electronic products. They also have a readymade system for collecting revenues for data services.

Broadcast Mobile TV does not require the operator's cellular network to work. A likely Mobile TV scenario has a hardware vendor or another third party selling Mobile TV subscriptions that use a portable digital TV receiver, standalone device, or a plug-in for existing media players (iPod, PSP, etc.).

Holland concludes, "MNOs must solidify their position in the mobile TV value chain before their role becomes minimized. They will have the main mobile video offerings in the marketplace for another year or two, just as 3G starts reaching some level of maturity. The more they build video watching patterns around the handset, the less vulnerable their position in the value chain will be."

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